Shares in National Australia Bank Ltd (ASX: NAB) have underperformed against the S&P/ASX 200 Index (ASX: XJO) over the last five years.
The big bank's stock has gained 8.4% in that time, lifting from $29.22 to $31.68.
That means a $5,000 investment five years ago would have been worth $5,417.28 at Friday's close.
For comparison, the ASX 200 has risen nearly 26% in that time.
So, have the dividends offered to those invested in NAB shares made up for the stock's underperformance? Let's take a look.
Image source: Getty Images
All dividends offered to those holding NAB shares since 2018
Here are all the dividends NAB has handed to investors since early 2018:
| 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 |
| Total: | $7.02 |
As the chart above shows, NAB investors have likely received $7.02 per share in dividends over the last five years.
That means a $5,000 investment in February 2018 has probably yielded around $1,200.42 in the years since, bringing our figurative return on investment (ROI) to approximately 32%.
Of course, that's before we consider any potential tax benefits brought about by the franking credits attached to all the bank's dividends during that time.
Additionally, if one were to have made use of NAB's dividend reinvestment plan (DRP), they may have bolstered their return through the power of compounding.
Right now, NAB shares offer a 4.77% dividend yield. And its offerings have been tipped to grow in the coming years.
