The big bank’s stocks have cooled off in the past month. So is it time to purchase now, just before it reports its results?
The post Why these experts think the NAB (ASX:NAB) share price is on the way up appeared first on The Motley Fool Australia. –
Analysts are speculating over which direction National Australia Bank Ltd (ASX: NAB) share price could be heading in the coming period.
The major bank’s stocks have gone sideways in the past month, down 0.18%.
But this week NAB reported its intentions to hire more staff to grow its private banking and wealth management businesses.
Three of the big banks, including NAB, will report their results in a few weeks.
Does that mean now is a buying opportunity for NAB shares?
Is a dividend boost coming for NAB shareholders?
Redpoint Investment Management senior portfolio manager Max Cappetta told The Motley Fool that he certainly favoured it over 2 other major banks.
“Our expectations are showing that their profitability looks to be rebounding more strongly.”
Goldman Sachs is forecasting that NAB will pay out a total dividend of 125 cents per share for the 2021 financial year.
As it has already given out 60 cents as an interim dividend, this would mean an 8.3% lift for the final dividend to bring it to 65 cents.
“When calculating against the current share price, NAB is trailing on a forecast fully-franked dividend yield of 4.4%,” reported The Motley Fool’s Aaron Teboneras.
“Before the onset of COVID-19, the bank had been paying shareholders fully franked dividends of 99 cents on a bi-annual basis.”
As for the price itself, Goldman Sachs has rated NAB shares a ‘buy’ with a price target of $30.62. That’s a nice 11.4% premium to Tuesday’s closing price.
Possible dangers for NAB shares
All bank ASX shares are currently facing the danger of a deflating housing market.
Property prices have ramped up the past 18 months on the back of historic low interest rates, and there are worries the market has overheated.
Morgan Stanley last week raised concerns about the high levels of household debt in Australia.
And this week treasurer Josh Frydenberg agreed, flagging that tighter lending regulations could come in to curb massive home loans.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of August 16th 2021
Why these experts say the Westpac (ASX:WBC) share price could be on the way up
Why we favour 2 of 4 big bank ASX shares: fund manager
The NAB (ASX:NAB) share price rises amid hiring frenzy in private banking
These experts believe the future is bright for the Bank of Queensland (ASX:BOQ) share price
The Westpac (ASX:WBC) share price is down 3% so far in September. What’s next?
Motley Fool contributor Tony Yoo 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.