Looking to bank the boosted National Australia Bank Ltd (ASX: NAB) dividend?
You're not alone.
The S&P/ASX 200 Index (ASX: XJO) bank stock has paid two annual, fully franked dividends every year for more than a decade now.
And passive income investors won't be disappointed by the final FY 2023 NAB dividend, declared when the bank reported its results for the 12 months ending 30 September today.
Here's what you need to know.
Why did the NAB dividend increase?
NAB reported some solid results for the year gone by.
That included net operating income of $20.65 billion, up 12.9% year on year. And cash earnings increased by 8.8% from FY 2022 to $7.73 billion.
With statutory net profit also up 7.6% from the prior year to $7.41 billion, the board declared a fully franked final dividend of 84 cents per share. That's an increase of 7.7% from the final FY 2022 NAB dividend.
This brings the full-year dividend payout to $1.67 per share. At the current NAB share price of $29.37, this equates to a yield (part trailing part pending) of 5.7%.
The full year's dividends represent a cash earnings payout ratio of 67.7%. That's in line with NAB's target dividend payout ratio range of 65% to 75% of cash earnings.
If you're looking to bag the boosted final dividend payout, you'll need to own shares at market close next Monday, 13 November. The ASX 200 bank stock trades ex-dividend next Tuesday.
Eligible investors can then expect that passive income to hit their bank account on 15 December.
Unless you prefer to reinvest your NAB dividend, that is.
The bank's dividend reinvestment plan (DRP) is active. And eligible shareholders can participate for up to five million shares.
Management said the bank expects to satisfy the DRP in full via an on-market purchase of shares.
