What is the NAB (ASX:NAB) fully franked dividend worth in November?

We take a look at what investors can expect to receive from the banking giant

| More on:
A young girl counts coins on a table.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

When it comes to ASX banking shares, most investors come for the dividend and stay for the dividend (and maybe the franking credits). It's arguably no different for National Australia Bank Ltd (ASX: NAB) shares.

Like the other major ASX banks, NAB hasn't exactly reclaimed its former glory in the dividend space. Sure, it seems to be well on the road to recovery after the devastation of last year's COVID crash (and dividend wipeout). But this was a bank that, only a few years ago, was paying out $1.98 in fully franked dividends per share every year. Contrast that figure with the grand total of 60 cents per share that investors received last year and you get the picture.

But NAB has recently released its full-year results for FY2021, which of course included information on its upcoming final dividend. So has the game changed for shareholders?

Well, it was arguably good news. Yes, NAB reported a 76.8% rise in cash earnings to $6.56 billion, as well as a return on equity metric of 10.7%. That was despite revenues falling 2.4% to $16.73 billion.

What are NAB's dividends in 2021 looking like?

But the real news for income-focused investors was the announcement of a final and fully franked dividend of 67 cents per share (in itself more than NAB's entire 2020 payouts). This 67 cents per share dividend comes after NAB's July interim payment of 60 cents per share (also fully franked) and will hit investors' bank accounts on 15 December.

The 67 cents per share dividend is a 123% increase from last year's final dividend of 30 cents per share. The total of $1.27 per share in dividends that investors will receive from NAB in 2021 is likewise a 112% rise on 2020's 60 cents per share in total dividend payments.

It also gives NAB shares a dividend yield of 4.51% (or 6.44% grossed-up with full franking) at the current share price (at the time of writing) of $28.11.

By comparison, Commonwealth Bank of Australia (ASX: CBA) shares are currently offering a dividend yield of 3.65%. Westpac Banking Corp (ASX: WBC) has 5.51% on the table. And Australia and New Zealand Banking Group Ltd (ASX: ANZ) is putting up 5.2%.

At the current NAB share price, this ASX bank has a market capitalisation of $92.07 billion, with a price-to-earnings (P/E) ratio of 14.95.

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Bank Shares

CBA shares are now worth a total of more than $300 billion. Here's why that's a problem

CBA’s ever growing stock market dominance is raising red flags. But why?

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak.
Record Highs

Breaking: CBA shares hit a new record of $180

CBA shares can't possibly keep rising can they?

Read more »

A small child in a judo outfit with a green belt strikes a martial arts pose with his hand thrust forward.
Bank Shares

Forget the big 4 banks, Macquarie tips 11% upside for this ASX All Ords Financials stock

This broker is telling investors to look beyond CBA.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

What price should I pay for the Big 4 banks?

Macquarie has updated its target price on Australia’s Big 4 banks.

Read more »

Bank building with word Bank on it.
Bank Shares

What happened with the big four ASX 200 bank stocks in May?

Guess which ASX 200 bank stock led the charge higher again in May.

Read more »

An ASX investor in a business shirt and tie looks at his computer screen and scratches his head with one hand wondering if he should buy ASX shares yet
Bank Shares

After the recent RBA rate cut, why is Macquarie underweight ASX bank shares?

Macquarie is not banking on strong returns from this sector.

Read more »

Business people discussing project on digital tablet.
Bank Shares

CBA vs Macquarie shares: Which one is best?

Ord Minnett has given its verdict on these giants.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

How the CBA share price smashed the benchmark to close May at all-time highs

I hope you didn’t sell your CBA shares in April!

Read more »