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.
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.
