The National Australia Bank Ltd (ASX: NAB) share price has come under pressure this month following a market selloff.
Since the start of June, the banking giant's shares have tumbled 14%.
While this decline is disappointing, it has made its dividend yield even more attractive for income investors.
In light of this, let's take a look to see what analysts are expecting from NAB's dividends in the coming years.
Where are NAB's dividends heading?
According to a note out of Goldman Sachs, its analysts are expecting consistent dividend growth from NAB through to FY 2024.
In FY 2021, NAB rewarded its shareholders with a fully franked $1.27 per share dividend. Goldman expects this to be increased to $1.50 per share in FY 2022. Based on the current NAB share price of $26.87, this implies a 5.6% dividend yield.
The broker is then forecasting a 15 cents per share increase to a fully franked $1.65 in FY 2023. This will mean an attractive yield of 6.15%.
Finally, in FY 2024, the broker is expecting NAB's dividend to increase to $1.72 per share. This equates to a fully franked 6.4% yield.
Are its shares in the buy zone?
The good news for investors is that as well as predicting some juicy yields, Goldman sees plenty of upside for the NAB share price from current levels.
The note reveals that its analysts currently have a conviction buy rating and $34.17 price target on the bank's shares. This suggests that there is potential upside of 27% for investors.
All in all, according to Goldman Sachs, the total potential return on offer with NAB's shares over the next 12 months is a sizeable ~33%.
