The NAB (ASX:NAB) dividend doubled in FY21: Here’s what you need to know

NAB’s dividend grew materially in FY 2021…
The post The NAB (ASX:NAB) dividend doubled in FY21: Here’s what you need to know appeared first on The Motley Fool Australia. –

This morning National Australia Bank Ltd (ASX: NAB) released its full year results and revealed a huge increase to its dividend.

Though, that hasn’t been enough to stop the banking giant’s shares from sliding lower today.

In early afternoon trade, the NAB share price is down 2% to $28.50.

NAB doubles dividend

While shareholders may be disappointed to see the NAB share price in the red today, they will no doubt be pleased to see the bank grow its dividend materially in FY 2021.

In case you missed it, the banking giant reported cash earnings of $6,558 million in FY 2021. This was up 76.8% over the prior corresponding period and allowed the NAB board to declare a fully franked final dividend of 67 cents per share. This was ahead of what the team at Morgans was forecasting. The broker was expecting a final dividend of 64 cents per share.

This brought the full year NAB dividend to $1.27 per share fully franked, which was up 112% on FY 2020’s 60 cents per share dividend.

Based on its cash profits, this dividend represents a payout ratio of 63.7% of earnings. This is likely to increase in the future with NAB announcing plans to adjust its capital and dividend settings during FY 2021. It will now target a payout ratio range of 65% to 75% of cash earnings.

NAB’s Non-Executive Director and Chair, Philip Chronican, commented: “We are pleased to have increased dividends across the full year to 127 cents per share, compared to a reduced level in 2020. This outcome is closer to the level of shareholder return the Board is targeting going forward, with future dividends to be guided by a target payout ratio range of 65-75% of sustainable cash earnings, subject to circumstances at the time.”

When will shareholders be paid?

According to the release, the final 67 cents per share fully franked NAB dividend will be paid to eligible shareholders in approximately five weeks on 15 December.

To be eligible to receive this payment, investors need to be owning the bank’s shares before they trade ex-dividend on Monday 15 November. This means you’ll need to own them at Friday’s close. If you don’t and you buy shares on Monday or afterwards, the rights to the dividend will remain with the seller.

The post The NAB (ASX:NAB) dividend doubled in FY21: Here’s what you need to know 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

ASX 200 (ASX:XJO) midday update: NAB result disappoints, PointsBet surges

NAB (ASX:NAB) share price falls despite bumper $6.56 billion cash profit

NAB (ASX:NAB) share price on watch after reporting 77% jump in cash earnings

5 things to watch on the ASX 200 on Tuesday

Analysts name 2 ASX 200 dividend shares to buy

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 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!