Why the National Australia Bank Ltd (ASX:NAB) share price has tumbled lower today

The ASX 200 may be pushing notably higher today, but the same cannot be said for the National Australia Bank Ltd (ASX: NAB) share price.

In early afternoon trade the banking giant’s shares have fallen almost 4% to $24.90.

Why are National Australia Bank’s shares tumbling lower?

Fortunately, today’s decline is not related to another Royal Commission bombshell or anything else untoward, but is due to the bank’s shares going ex-dividend this morning for its fully franked final dividend of 99 cents per share.

This dividend is scheduled to be paid to eligible shareholders in approximately five weeks on December 14, just in time for Christmas shopping.

Were it not for its shares going ex-dividend this morning, they would actually be in positive territory along with Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), and Westpac Banking Corp (ASX: WBC).

Should you buy the dip?

While I think that all the banks are priced at attractive levels currently, I wouldn’t be buying National Australia Bank’s shares now they have gone ex-dividend.

Instead, I would be looking at ANZ Bank and Westpac shares which have not gone ex-dividend yet.

ANZ Bank’s shares will trade ex-dividend on Monday (November 12) for its fully franked 80 cents per share final dividend. This will then be paid to shareholders on December 19.

Westpac’s shares will follow on November 13 for its fully franked 94 cents per share final dividend, which will then be paid eligible shareholders on December 20.

Where to reinvest your National Australia Bank dividend?

If you’re a National Australia Bank shareholder already then you may be considering your reinvestment options.

Shareholders that wish to diversify their portfolio away from the banks might want to consider fellow dividend shares Dicker Data Ltd (ASX: DDR) and National Storage REIT (ASX: NSR). Both these shares have similarly generous yields but also solid growth prospects over the medium term.

And here's another top dividend share that has been recently given a buy rating.

The best dividend share to buy in November

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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