The National Australia Bank Ltd (ASX: NAB) dividend has been announced for investors, along with a number of intriguing insights within the FY24 result.
While investors didn't love the ASX bank share's report – the NAB share price is down 0.10% at the time of writing – the dividend was a highlight for shareholders.
A dividend return may not always be as large as the possible capital gains or losses, but plenty of Aussies appreciate the passive income payments.
Let's dive into the juicy details of the latest income payment from the bank.
NAB dividend
The NAB board decided on a final dividend of 85 cents per share for FY24, representing a 1 cent per share increase on the final dividend from FY23. In percentage terms, this was an increase of 1.2%.
Added to the half-year dividend of 84 cents per share, this brings the full-year payout to $1.69 per share, an increase of 2 cents compared to FY23. That's also a year-over-year increase of 1.2%.
The board decided on these payments after seeing that the bank's cash earnings had dropped 8.1% to $7.1 billion and statutory net profit had declined 6.1% to $7 billion.
How much of the profit is being paid to shareholders?
Its statutory dividend payout ratio from continuing operations is 74.2% for FY24, up from 70.2% in FY23. The cash earnings payout ratio is 73.7%, which is in line with its dividend payout ratio target range of between 65% to 75% of cash earnings, subject to board determination based on circumstances at the relevant time.
When will this be paid?
The first date to be aware of is the ex-dividend date. This is the day when new investors buying NAB shares will have missed out on the upcoming dividend.
If investors want to own the ASX bank share for the dividend payment, they need to be invested before the ex-dividend date.
NAB's ex-dividend date for the 85 cents per share final dividend is next Tuesday, 12 November 2024. Investors must own NAB shares by the end of trading on Monday, 11 November 2024.
The dividend is expected to be paid on 16 December 2024, so shareholders have less than six weeks to wait for the payment.
Investors could decide to participate in the dividend reinvestment plan (DRP). In this plan, shareholders can elect to receive new NAB shares rather than cash as their payment.
However, there is not much time to make a choice. The DRP election date is 14 November 2024 at 5 pm.
