National Australia Bank recently reported cash earnings of $3.15 billion, for its first half of operations – up 8.5% on its prior corresponding period – which allowed it to increase its interim dividend by 10%, to 99 cents per share (cps).
This dividend is not only higher than its previous interim dividend, but also topped its highest ever final dividend of 97cps recorded in 2013.
The bank’s shares are now trading at $33.57 and offer a fully franked dividend yield of 5.7%, which is the highest yield offered by any of the big four banks.
In comparison, Westpac Banking Corp (ASX: WBC) offers a 5.1% yield, while Australia and New Zealand Banking Group (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) yield 5.2% and 4.7%, respectively.
A safer bet than the major banks
The banks have enjoyed a fantastic run over the last few years, but those good times could now have come to an end, with limited upside potential from today’s prices.