Insights

How does the NAB dividend compare to its sector?

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. –

The National Australia Bank Ltd (ASX: NAB) dividend is worth talking about. Australia’s third largest lender is currently trading on a forward dividend per share of 120 cents.

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?

Let’s start with the largest of the Aussie banks — Commonwealth Bank of Australia (ASX: CBA). CBA recently announced a $2.00 per share final dividend for the year ended 30 June 2021 (FY21).

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.

The NAB dividend also trails the smallest of the Big Four banks by market capitalisationAustralia and New Zealand Banking Group Ltd (ASX: ANZ).

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.

Foolish takeaway

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.

The post How does the NAB dividend compare to its sector? appeared first on The Motley Fool Australia.

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

More reading

2 buy-rated ASX dividend shares with big fully franked yields

CBA (ASX:CBA) just failed the government’s superannuation test
Top broker says ANZ (ASX:ANZ) share price is a buy
Is the CBA (ASX:CBA) share buyback a sign of limited growth potential?
Australia’s rising delta recession risk could hit these ASX 200 shares badly

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!