National Australia Bank Ltd (ASX: NAB) shares are a popular option with income investors and it isn't hard to see why. Each year, the banking giant shares a decent portion of its earnings with shareholders in the form of dividends.
For example, in May, NAB released its half-year results and reported a 17% increase in cash earnings to $4,070 million. This allowed the NAB board to increase its fully franked interim dividend by 13.7% to 83 cents per share.
While that dividend has long since been paid, it won't be long until NAB is declaring its final dividend for FY 2023. The bank is scheduled to release its on 9 November. Usually its dividend payment then follows just before Christmas.
But what is expected from the NAB dividend later this year? And what about in 2024? Let's take a look and find out what the market is forecasting for the big four bank.
NAB dividend forecast
According to a note out of Goldman Sachs, its analysts are expecting the NAB board to declare an 83 cents per share final dividend for FY 2023 in November.
This would mean a dividend of $1.66 per share for the year, which represents a 10% increase over FY 2022's $1.51 per share dividend.
Based on the current NAB share price of $29.05, this equates to a very attractive 5.7% dividend yield. This is much better than any interest rates you will find on its savings accounts or term deposits.
The good news is that Goldman expects NAB to maintain its dividend at $1.66 per share in FY 2024. This will once again mean a fully franked 5.7% dividend yield for investors.
And finally, the broker believes the NAB dividend will remain at $1.66 per share in FY 2025 as well. So, that's another 5.7% yield for income investors to look forward to.
Goldman also sees approximately 5% upside for NAB's shares with its buy rating and $30.51 price target.
