Today is a good day to be a National Australia Bank Ltd (ASX: NAB) shareholder.
That's because this morning, the banking giant will be rewarding them with its latest dividend.
This coincides with the bank's annual general meeting for 2023 in Sydney today.
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The NAB dividend
Last month, the big four bank released its results for the 12 months ended 30 September.
NAB reported a 12.9% increase in net operating income to $20,654 million thanks to a 13.2% increase in net interest income to $16,807 million and an 11.7% lift in other operating income to $3,847 million.
And with the company's operating expenses increasing at a slower rate, NAB's earnings grew at an even quicker rate. It posted a 16.1% increase in underlying profit to $11,631 million for the 12 months.
This allowed the NAB board to declare a fully franked final dividend of 84 cents per share, which brought its full-year dividend to 167 cents per share. This was an increase of 10.6% year on year.
It is the final dividend of 84 cents per share that is being paid to shareholders today, just in time for some last-minute Christmas shopping.
What's next for NAB shares and its dividend?
According to a note out of Goldman Sachs, its analysts believe there's still a modest amount of upside ahead for NAB shares. Its analysts currently have a buy rating and a $30.52 price target on them.
As for dividends, the broker is forecasting fully franked dividends of $1.62 per share in both FY 2024 and FY 2025.
Based on the latest NAB share price of $29.95, this will mean above-average dividend yields of 5.3% for investors over the next two financial years.
