The NAB dividend is being paid today. Here's what you need to know

NAB shareholders might want to check their bank accounts today.

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Key points

  • The NAB share price has backtracked 10% over the past month, bringing its losses to 4% in 2022
  • Eligible shareholders for NAB's interim dividend will receive a payment of 73 cents per share today
  • The interim dividend represents an increase of 22% on the H1 FY21 dividend (60 cents per share)

National Australia Bank Ltd (ASX: NAB) shareholders will become a little richer today.

After the bank's shares tumbled more than 10% in the past month, the company is paying out its latest interim dividend.

At Monday's market close, the NAB share price finished 0.84% higher to $27.74.

For context, the S&P/ASX 200 Index (ASX: XJO) also rose yesterday by 1.11% to 6,612.6 points.

Let's take a look at the details regarding the company's dividend.

The details of NAB's latest dividend

In early May, NAB reported growth across key metrics in its half-year results for the 2022 financial year.

In summary, revenue improved by 4.6% to $9,071 million over the prior corresponding period. The robust performance was underpinned by an increase in lending and deposits, which lifted by 10% and 12% respectively.

This led to the bank achieving a 4.1% boost in cash earnings to $3,480 million.

Management noted that the key driver was the bank's business banking operations.

The board elected to increase NAB's interim dividend by 22% to 73 cents per share.

The dividend is fully franked which means those who receive it will get some form of tax credits.

Based on yesterday's closing price, NAB has a dividend yield of 5.09%. That sits in the mid-range of the big four.

NAB share price snapshot

Over the past 12 months, the NAB share price has moved in circles to register a return of around 5%.

Its shares hit a 52-week high of $33.75 on 21 April before erasing those gains in the following months.

NAB has a price-to-earnings (P/E) ratio of 13.74 and commands a market capitalisation of roughly $87.78 billion.

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.

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