National Australia Bank Ltd (ASX: NAB) shares not only have the potential to go up in value, they also have a lengthy history of providing shareholders with a handy passive income stream.
The S&P/ASX 200 Index (ASX: XJO) bank stock has paid out two annual, fully franked dividends every year since 2011.
At the current share price of $26.19, the big four bank trades on a trailing yield of 6.1%.
NAB shares haven't shot the lights out in terms of capital gains over that period. The stock's up about 16% since the beginning of 2011 and down 11% so far in 2023.
But with the passive income thrown in, investors who bought shares then are unlikely to be complaining.
That's the long-term picture.
Focusing on the short-term, if you'd bought shares on 14 November, you could have grabbed two NAB dividend payments already.
How much passive income have NAB shares delivered since November?
NAB paid its final dividend of 78 cents per share on 14 December.
NAB shares traded ex-dividend on 15 November. Since it's passive income we're after, that's why we're investing our $6,000 on 14 November.
On that day, you could have paid $31.25 per share for the bank's stock. Which would have netted you 192 NAB shares. Which would have seen $149.76 of passive income land in your bank account the following month, on 14 December,
Assuming you're still holding those shares, you'd also now be eligible for NAB's interim dividend of 83 cents per share. The stock traded ex that dividend last week, 10 May.
Shareholders can expect that dividend payment on 5 July.
So, all told NAB shares have returned $1.61 in dividends since November. That's assuming that 5 July payment is as good as money in the bank, as you'd still receive the payout it if you sold your stock today.
That means for your $6,000 investment on 14 November you'd already have earned $309.12 in passive income, with potential tax benefits from the franking credits.
