What could $1,000 invested in NAB shares be worth in a year?

Is it worth putting money into this bank share right now?

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National Australia Bank Ltd (ASX: NAB) shares are rising again on Friday.

In afternoon trade, the banking giant's shares are up 1% to $29.59.

This means that the NAB share price is now up more than 15% over the last three months.

In light of this strong recent gain, investors may be wondering if there are more gains ahead or if the bank's shares are now close to peaking.

Let's see what a $1,000 investment in NAB shares could be worth in a year.

Where next for NAB shares?

According to a recent note out of Goldman Sachs, its analysts have a buy rating and a $30.51 price target on the bank's shares. This implies a potential upside of just 3.1% for investors over the next 12 months.

While this may not be overly attractive at first glance, it is worth remembering that NAB is a big dividend payer.

So, if income is your focus, then it could still be worth considering NAB. Particularly given that Goldman is forecasting fully franked dividends per share of $1.66 in FY 2023, FY 2024, and FY 2025.

Based on the current NAB share price, if the broker's forecast is accurate, this would mean annual dividend yields of 5.6%.

So, all in all, this suggests a total potential return of 8.7% for investors over the next 12 months, which is largely in line with the historical average return for the market. This is certainly not something to sniff at if you ask me!

So what would our investment be worth? Well, based on the assumptions listed above, if you were to invest $1,000 into NAB shares today, you would see your investment grow to $1,087.

And remember, compounding is your friend. The longer you invest, the greater your returns can become.

For example, if you continued to earn a return of 8.7% for another nine years, you would see your $1,087 increase to approximately $2,300.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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