Premier blue-chip financial shares like National Australia Bank Ltd (ASX: NAB) are a popular choice for income-seeking investors wanting a regular passive income.
ASX bank stocks are generally considered cyclical, rather than traditional defensive shares. But large-scale banking majors like NAB also have some defensive qualities.
That's because banking and credit are often considered an essential service. And it means the sector can remain relatively stable even in times of volatility
NAB also earns a large portion of its revenue from loans and deposits. This means it is able to create a steady stream of net income.
The bank is also diversified thanks to its exposure to business banking as well as home lending. NAB holds a leading market position in Australian business and SME banking, providing it with a more diversified earnings base compared to other banking majors that lean more heavily into residential mortgages.
Another bonus is that NAB is huge in scale. It is the third-largest bank in Australia and consistently ranks among the largest companies on the ASX by market capitalisation. At the time of writing, NAB has a market capitalisation of around $116 billion.
Its huge scale has enabled the bank to maintain a long history of paying a regular, fully or partially-franked dividend every year, dating back to 2003.
But what exactly does that passive income look like?
Let's investigate.
Image source: Getty Images
How many NAB shares can I buy for $5,000?
At the time of writing, NAB shares are $37.86 a piece. That means your $5,000 investment will buy you around 132 shares.
What dividend does NAB pay its shareholders?
NAB traditionally makes two fully-franked dividend payments to shareholders per year, payable in July and December.
NAB is due to pay its shareholders an interim dividend of 85 cents per share, fully franked, later this week.
Based on the latest forecasts, the bank is expected to pay a total dividend of $1.73 per share in FY27. It is also forecasted to pay $1.76 per share in FY28.
Based on the current share price of $37.86, that translates to a forward dividend yield of around 4.6% for FY27. For FY28, the forward dividend yield is closer to 4.7%, at the time of writing.
So, what's the estimated passive income for FY27 and FY28?
Using the estimated payout figures above, we can calculate how much income to expect from a $5,000 investment in NAB shares.
If the banking giant pays the expected $1.73 per share in FY27, your 132 shares would generate $228.36 in passive income.
Assuming the $1.76 forecasted dividend for FY28 is also correct, your 132 shares would generate an estimated $232.32 the following year.
Does that mean NAB shares are a good buy for passive income?
After pulling back from its highs earlier in 2026, NAB looks more reasonably valued than it did a few months ago.
The outlook for NAB shares is divided, but the majority of brokers on Market Index have a hold rating on the bank stock. The $38.56 target price implies around a 2% upside at the time of writing.
In my view, National Australia Bank is one of the stronger options on the ASX for investors looking for passive income, and its dividend yield is attractive.
