You may be wondering why the National Australia Bank Ltd. (ASX: NAB) share price is backtracking today.
At the time of writing, the major bank’s shares are down 4.25% to $30.43.
Shareholders lock in the NAB interim dividend
With the earning seasons wrapped up for some of the major banks, NAB is trading ex-dividend today.
This comes after the banking giant released its half-year scorecard on 5 May, reporting growth across key financial metrics.
The board opted to ramp up its upcoming interim dividend by 22% over the prior corresponding period.
Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy NAB shares before this date, the dividend will go to the seller.
When can shareholders expect to be paid?
For those eligible for NAB’s interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is fully franked at a corporate tax rate of 30%, which means investors will 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. This will be based on a 10-day volume-weighted average price from 18 May to 31 May.
There is no DRP discount rate and the last election date for shareholders to opt in is this Friday.
NAB share price summary
Since the beginning of 2022, NAB shares have gained 5% on the back of positive investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 5% over the same timeframe.
NAB shares reached a 52-week high of $33.75 last month, before pulling back in the following weeks.
Based on today’s price, NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.02%.