National Australia Bank Ltd (ASX: NAB) shares have been providing investors with a portion of the major bank's profits in the form of dividends since 1983. Though, its stock has failed to keep up with the market over the last decade.
The S&P/ASX 200 Index (ASX: XJO) has gained more than 50% since December 2012. The NAB share price, meanwhile, has lifted nearly 30% in that time to trade at $30.12 today.
An investor who bought $1,000 of the big bank's stock this time 10 years ago would likely have walked away with 42 shares paying $23.34 apiece and $19 change. Today, that same parcel would be worth $1,265.04.
Have NAB's dividends made up for its share price's underperformance? Let's take a look.
How much have NAB shares paid in dividends in 10 years?
Here are all the dividends handed out to those invested in NAB shares over the last decade:
| NAB dividends' pay date | Type | Dividend amount |
| December 2022 | Final | 78 cents |
| July 2022 | Interim | 73 cents |
| December 2021 | Final | 67 cents |
| July 2021 | Interim | 60 cents |
| December 2020 | Final | 30 cents |
| July 2020 | Interim | 30 cents |
| December 2019 | Final | 83 cents |
| July 2019 | Interim | 83 cents |
| December 2018 | Final | 99 cents |
| July 2018 | Interim | 99 cents |
| December 2017 | Final | 99 cents |
| July 2017 | Interim | 99 cents |
| December 2016 | Final | 99 cents |
| July 2016 | Interim | 99 cents |
| December 2015 | Final | 99 cents |
| July 2015 | Interim | 99 cents |
| December 2014 | Final | 99 cents |
| July 2014 | Interim | 99 cents |
| December 2013 | Final | 97 cents |
| July 2013 | Interim | 93 cents |
| December 2012 | Final | 90 cents |
| Total: | $17.74 |
Did you buy NAB shares for $23.34 apiece 10 years ago? If you did, you've likely received $17.74 in dividends per share over the years since.
Thus, a near-$1,000 investment in the big bank a decade ago would have yielded $745.08 by now. That's certainly nothing to scoff at!
It also means our figurative investor has earned more in capital gains and dividends than they forked out to begin with – discounting the initial purchase price, their investment would have returned a total of $1,029.88 over its life so far.
Of course, they might have boasted an even larger return if they worked to compound their dividends by making use of NAB's dividend reinvestment plan (DRP).
Additionally, all dividends paid by the bank in that time have been fully franked. That means they might have provided more benefits at tax time.
Right now, NAB shares trade with a 5% dividend yield.
