Looking to secure the latest NAB dividend. Here’s what you need to do

NAB shares will be on watch over the coming days.

| More on:
A little girl holds on to her piggy bank, giving it a really big hug.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The NAB share price has fallen 6% over the past three weeks 
  • The company's shares are set to trade ex-dividend on Wednesday 
  • NAB will pay eligible shareholders a dividend payment of 73 cents on 5 July 

The National Australia Bank Ltd. (ASX: NAB) share price has been treading lower in the past three weeks.

While NAB shares finished 0.19% higher to $31.68 yesterday, this hasn’t been the case since 21 April.

In fact, the major bank’s shares have fallen around 6% followed by turmoil across global markets. This is because of fears surrounding interest rate hikes, inflation, and a poor earnings season for major Wall Street companies.

NAB shares set to go ex-dividend

Despite the volatility, some investors have been buying the bank shares following the company’s half year results last week.

This is most likely because of the upcoming ex-dividend date for NAB shares.

Investors need to buy NAB shares before market close today to be eligible for the interim dividend. The ex-dividend date is on Wednesday 11 May.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can NAB shareholders expect payment?

For those who are eligible for the NAB interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.

There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 18 May to 31 May.

The last election date for shareholders to opt into the DRP is on 13 May.

The dividend reflects a statutory payout ratio of 66.9% which is in line with management’s stated dividend policy.

NAB share price snapshot

Since the beginning of 2022, the NAB share price has gained 10% and is up around 18% in the last 12 months.

The company’s shares reached a 52-week high of $33.75 last month, before treading lower in the following days.

NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.01%.

Motley Fool contributor Aaron Teboneras 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 Scott Phillips.

More on Dividend Investing

Gold bars and Australian dollar notes.
Resources Shares

Do Evolution Mining shares pay a dividend?

The ASX 200 mining shares are known as good dividend payers -- is Evolution among them?

Read more »

a pile of colourful trainer shoes and sandshoes fashioned to look like a large shoe.
Retail Shares

What is the current dividend yield for Accent shares?

What kinds of dividends is Accent Group paying these days?

Read more »

Woman in business suit holds both hands out with a question mark above each hand.
Dividend Investing

How does the Woolworths dividend compare to Wesfarmers over the last 5 years?

How does the Woolworths dividend fare against its biggest rival?

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Dividend Investing

Brokers rate these ASX dividend shares as buys

These dividend shares could be buys according to brokers...

Read more »

A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.
Dividend Investing

4 ASX dividend shares to buy that aren’t banks or miners: expert

Finance and resources aren't the only income-producing stocks. Here are some going for cheap after the recent sell-off.

Read more »

A woman holds a lightbulb in one hand and a wad of cash in the other
Dividend Investing

Here are 2 top ASX 200 dividend shares to buy right now according to experts

Here are a couple of top dividend shares that could be buys...

Read more »

A group of people in suits and hard hats celebrate the rising share price with champagne.
Resources Shares

Which ASX 200 mining share offers the best dividend yield for FY22?

Top brokers are forecasting dividend yields of 14% to 17% from the big three ASX 200 miners in FY22.

Read more »

Three colleagues stare at a computer screen with serious looks on their faces.
Dividend Investing

Here are 3 ASX financial shares going ex-dividend this week

Let's check out some funds going ex-div this week.

Read more »