Looking to bank some handy extra passive income from the latest National Australia Bank Ltd (ASX: NAB) dividend?
Well, you're in good company.
At the time of writing, 13,101 trades have already been made on NAB shares today, with a total value of $103.8 million.
And with more buying interest than selling, the NAB share price is up 3.1% at $36.41.
This follows the release of the bank's half-year results (H1 FY 2025).
Here's what's happening with the NAB dividend.
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What to know about the NAB dividend
NAB delivered some solid half-year results today, despite what management noted were "challenging operating conditions".
The ASX 200 bank stock reported a 1.4% year-on-year increase in net operating income to $10.28 billion. And NAB's net interest margin (NIM) remained in line with H1 FY 2024 at 1.7%.
With cash earnings up 1% year-on-year to $3.58 billion, management increased the interim NAB dividend by a similar 1.2%. Management declared a fully franked interim dividend of 85 cents per share, up from 84 cents per share last year.
At the current NAB share price of $36.41, this equates to a fully franked pending yield of 2.3% from the interim dividend alone.
The big four bank also paid a final dividend of 85 cents a share on 16 December. This sees NAB shares trading on a fully franked yield (partly trailing, partly pending) of 4.7%.
Now, if you want to bank the latest passive income payout, you don't have much time.
NAB shares trade ex-dividend on Monday, 12 May. Meaning you'll need to own shares at market close this Friday to be eligible to receive that payout. You can then expect the NAB dividend to hit your bank account on 2 July.
Unless, of course, you're looking to take advantage of the power of compounding and let those dividends ride. In that case, NAB's dividend reinvestment plan (DRP) is in effect.
The bank continues to target a dividend payout ratio of 65% to 75% of cash earnings.
Now what?
As for the passive income outlook, NAB CEO Andrew Irvine said, "We are well placed to manage our business for the long term and deliver sustainable growth and attractive returns for shareholders."
Irvine added:
Execution of our refreshed strategy is underway. We are focused on driving much stronger customer advocacy across our bank, along with greater speed and simplicity, and ongoing modernisation of our technology.
This will support our key priorities of continuing to drive performance in deposits, improving proprietary lending, and growing business banking.
