Insights

Should you buy NAB (ASX:NAB) shares in August 2021 for the dividend yield?

We take a look at how NAB dividends stack up against the other big banks.
The post Should you buy NAB (ASX:NAB) shares in August 2021 for the dividend yield? appeared first on The Motley Fool Australia. –

The National Australia Bank Ltd. (ASX: NAB) share price has been performing well lately, but is it a good buy for its dividends?

The NAB share price has gained 15.4% year to date, with Goldman Sachs analysts believing it will boost higher in the near future.

The bank also boasts a dividend yield of 3.39%.

But is August a good time to buy NAB shares for the dividends? And how does it compare to its S&P/ASX 200 Index (ASX: XJO) banking peers?

Let’s take a look.

Is NAB worth buying for its dividend?

NAB has been handing out dividends to its shareholders since 1983.

Wondrously, between 2014 and 2018, NAB’s interim and final dividends were consistently both 99 cents.

In 2019, both the bank’s interim and final dividends were 83 cents. While in 2020, perhaps understandably, they slipped to 39 cents apiece due to the pandemic.

NAB’s 2021 interim dividend was valued at 60 cents, leaving the company with a dividend yield of 3.39%.

Historically, the bank has announced its final dividend in November. It has also historically given a full-year dividend of the same value as its interim dividend.

That means it’s likely NAB’s 2021 final dividend will be worth 60 cents per share.

The NAB share price is predicted to gain in the near future, while its dividend might not increase until May 2022. Thus, August might be the time to get the most out of the bank’s dividend yield.

Though, it’s not wise to assume all expert predictions will prove fruitful and that NAB will follow its previous trends.

In addition, all dividends that the bank has handed to its shareholders since 2007 have been 100% franked.

That means some Australian investors can use the bank’s dividends to reduce the amount of tax they pay.

So far, so good. At this point, NAB shares look like they could be a good August buy.

But how does the bank’s dividend compare to its competitors?

Big four dividends

For comparison, the Commonwealth Bank of Australia (ASX: CBA) offers the smallest dividend yield of all the big 4 banks. Its dividend yield is 2.44%. Additionally, the CBA dividend has historically been less consistent than that of NAB.

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) boasts the largest dividend yield of the big 4 – its dividends are worth 3.72% of its share price.

Westpac Banking Corp (ASX: WBC) is only doing slightly better than NAB, with a dividend yield of 3.56%.

Foolish takeaway

All in all, while the NAB dividend is strong, and it has been for many years, it currently isn’t quite as strong as those of some other big banks.

Though, August is as good a time as any to buy the bank’s shares for its dividends. Especially given its share price is predicted to increase.

However, all investments must consider an investor’s individual circumstances and goals.

The post Should you buy NAB (ASX:NAB) shares in August 2021 for the dividend yield? appeared first on The Motley Fool Australia.

Should you invest $1,000 in National Australia Bank right now?

Before you consider National Australia Bank, 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 National Australia Bank 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 May 24th 2021

More reading

Leading broker names 3 of the best ASX shares to buy in August

Westpac (ASX:WBC) share price struggles amid surging customer refunds
Top brokers name 3 ASX shares to sell today

Square might crash the Afterpay (ASX:APT) and Westpac partnership
What is the outlook for the Westpac (ASX:WBC) share price?

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 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!