Bought $1,000 of NAB shares 10 years ago? Here's how much dividend income you've received

NAB's dividends may have nearly doubled an investors' money in just 10 years.

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Key points

  • The NAB share price has underperformed against the ASX 200 over the last 10 years
  • The stock has gained around 30% while the index has soared more than 50% in that time
  • Fortunately, the big bank's dividends have made up for its stock's sluggishness

National Australia Bank Ltd (ASX: NAB) shares have been providing investors with a portion of the major bank's profits in the form of dividends since 1983. Though, its stock has failed to keep up with the market over the last decade.

The S&P/ASX 200 Index (ASX: XJO) has gained more than 50% since December 2012. The NAB share price, meanwhile, has lifted nearly 30% in that time to trade at $30.12 today.

Created with Highcharts 11.4.3National Australia Bank PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

An investor who bought $1,000 of the big bank's stock this time 10 years ago would likely have walked away with 42 shares paying $23.34 apiece and $19 change. Today, that same parcel would be worth $1,265.04.

Have NAB's dividends made up for its share price's underperformance? Let's take a look.

How much have NAB shares paid in dividends in 10 years?

Here are all the dividends handed out to those invested in NAB shares over the last decade: 

NAB dividends' pay dateTypeDividend amount
December 2022Final78 cents
July 2022Interim73 cents
December 2021Final67 cents
July 2021Interim60 cents
December 2020Final30 cents
July 2020Interim30 cents
December 2019Final83 cents
July 2019Interim83 cents
December 2018Final99 cents
July 2018Interim99 cents
December 2017Final99 cents
July 2017Interim99 cents
December 2016Final99 cents
July 2016Interim99 cents
December 2015Final99 cents
July 2015Interim99 cents
December 2014Final99 cents
July 2014Interim99 cents
December 2013Final97 cents
July 2013Interim93 cents
December 2012Final90 cents
Total: $17.74

Did you buy NAB shares for $23.34 apiece 10 years ago? If you did, you've likely received $17.74 in dividends per share over the years since.

Thus, a near-$1,000 investment in the big bank a decade ago would have yielded $745.08 by now. That's certainly nothing to scoff at!

It also means our figurative investor has earned more in capital gains and dividends than they forked out to begin with – discounting the initial purchase price, their investment would have returned a total of $1,029.88 over its life so far.

Of course, they might have boasted an even larger return if they worked to compound their dividends by making use of NAB's dividend reinvestment plan (DRP).

Additionally, all dividends paid by the bank in that time have been fully franked. That means they might have provided more benefits at tax time.

Right now, NAB shares trade with a 5% dividend yield.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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