How does NAB’s dividend stack up against its Big Four peers?
The post How does the NAB dividend compare to its sector? appeared first on The Motley Fool Australia. –
That comes after a 60 cent per share interim dividend announced in May 2021 after a conservative 2020 due to COVID-19 impacts and regulatory restrictions.
This NAB payout estimate means the bank’s shares are trading on a 3.26% dividend yield right now. So, how does that compare to other ASX banking shares?
How does the NAB dividend compare to its sector?
The fully-franked distribution gives CBA shares a 3.50% forward dividend yield right now. That’s based on Tuesday’s closing price of $100.12 per share and assumes an unchanged $1.50 per share interim payment.
Westpac Banking Corp (ASX: WBC) announced a fully-franked, 58 cents per share interim dividend on 3 May. The group’s shares are currently trading on a forward 89 cents dividend (assuming December’s dividend remains unchanged) for a 3.42% dividend yield.
ANZ announced a 70 cents per share interim dividend in May 2020 and is trading on an assumed 1.37 cents per share forward dividend.
That gives the Aussie bank a 3.62% forward dividend yield at the time of writing.
So, all of NAB’s peers have higher dividend yields — what does it all mean?
For one thing, NAB hasn’t announced its full-year results yet and November’s update will be one to watch. There’s also the $2.5 billion share buyback program announced in July to return surplus capital to investors.
That means the NAB dividend isn’t the only way that investors can gain returns from their shares at the moment.
Should you invest $1,000 in NAB right now?
Before you consider NAB, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NAB wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
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Motley Fool contributor Ken Hall 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 Bruce Jackson.