As one of the big four banks, the National Australia Bank Ltd (ASX: NAB) dividend is a popular option for income investors.
In light of this, readers might be interested to learn what the bank is saying about its dividend today following the release of its full year results for FY 2022.
Here's the lowdown on the NAB dividend
This morning NAB released its full year results and, for the 12 months ended 30 September, reported cash earnings of $7,104 million. This represents an increase of 8.3% year over year.
This solid earnings growth allowed the NAB board to declare a fully franked final dividend of 78 cents per share, which was an increase of 16.4% over last year's final dividend of 67 cents.
For the full year, this took NAB's dividend to a fully franked 151 cents per share, which was an increase of 18.9% year over year and equates to a total return of $4.8 billion.
Based on the current NAB share price, this final dividend equates to a fully franked 2.5% yield and its full year dividend represents a 4.9% yield.
Commenting on its decision to pay this dividend, NAB said:
NAB is making excellent progress on our strategy and the Board is encouraged to see the operational results that this is delivering. This is reflected in improved earnings with all businesses contributing to underlying profit growth, and significant and sustainable momentum across the Group. Our most recent colleague engagement score is 76, compared with 77 in July 2021, and is close to the latest top quartile score of 78. Taking all this into account, the Board has determined dividends for the year of 151 cents per share, returning $4.8bn in total to shareholders.
What else do you need to know?
If you wish to be eligible for the upcoming NAB dividend, you'll need be a shareholder before its shares trade ex-dividend on 15 November. After which, you can look forward to receiving this dividend just under a month later on 14 December.
If you're already a shareholder and looking to use NAB's dividend reinvestment plan (DRP), you'll need to make sure that you have indicated that this is your wish (if you haven't previously done so) before the close of business on 17 November. Unfortunately, on this occasion, there is no DRP discount for the final dividend of FY 2022.
