Is the NAB share price a buy?

Is the National Australia Bank Ltd (ASX:NAB) share price a buy?

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Is the National Australia Bank Ltd (ASX: NAB) share price a buy?

The NAB share price has been a little volatile over the past month, but it's almost the same price as it was on 25 January 2019. The Royal Commission report didn't create much of a positive buzz due to the singling out of former CEO Mr Thorburn and soon-to-be-gone Chairman Dr Henry for their negative performances in the Royal Commission hearings.

The next person to take the reins at NAB is anyone's guess. My initial thought was that Mike Baird would be the next CEO due to his public stature and his current position as NAB's head of retail banking.

However, Mr Baird may perhaps be a little too new to the role to get the job just yet. The AFR has speculated about a couple of internal candidates, but Medibank Private Limited (ASX: MPL) CEO Craig Drummond was another name floated as a potential candidate.

NAB has a few things going for it compared to Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

NAB has long been considered the cheapest of the big banks. Perhaps it's the cheapest for good reason, but with all of them all exposed to the same sort of risks, it could be beneficial to own the cheapest at least for the short to medium term.

With NAB being so cheap, its dividend yield is the biggest out of them, it's currently 11.5%. How about that for dividend income?

I also like that NAB works closely with some of the best ASX businesses like REA Group Limited (ASX: REA), Xero Limited (ASX: XRO) and Afterpay Touch Group Ltd (ASX: APT).

However, the falling house prices does raise the chance of rising bad debts for NAB.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO, National Australia Bank Limited, and Xero. The Motley Fool Australia has recommended REA Group Limited. 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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