Looking to secure the latest NAB dividend. Here’s what you need to do

NAB shares will be on watch over the coming days.
The post Looking to secure the latest NAB dividend. Here’s what you need to do appeared first on The Motley Fool Australia. –

The National Australia Bank Ltd. (ASX: NAB) share price has been treading lower in the past three weeks.

While NAB shares finished 0.19% higher to $31.68 yesterday, this hasn’t been the case since 21 April.

In fact, the major bank’s shares have fallen around 6% followed by turmoil across global markets. This is because of fears surrounding interest rate hikes, inflation, and a poor earnings season for major Wall Street companies.

NAB shares set to go ex-dividend

Despite the volatility, some investors have been buying the bank shares following the company’s half year results last week.

This is most likely because of the upcoming ex-dividend date for NAB shares.

Investors need to buy NAB shares before market close today to be eligible for the interim dividend. The ex-dividend date is on Wednesday 11 May.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can NAB shareholders expect payment?

For those who are eligible for the NAB interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.

There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 18 May to 31 May.

The last election date for shareholders to opt into the DRP is on 13 May.

The dividend reflects a statutory payout ratio of 66.9% which is in line with management’s stated dividend policy.

NAB share price snapshot

Since the beginning of 2022, the NAB share price has gained 10% and is up around 18% in the last 12 months.

The company’s shares reached a 52-week high of $33.75 last month, before treading lower in the following days.

NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.01%.

The post Looking to secure the latest NAB dividend. Here’s what you need to do 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 over 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 January 13th 2022

More reading

Is the NAB share price a buy amid this volatility?
Is it too late to buy big bank ASX shares?
What’s the outlook for the NAB share price following the bank’s latest results?
Broker names 2 excellent ASX 200 dividend shares to buy
5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Teboneras 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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