Well, we've had a few blockbuster news events on the ASX boards to kick off the trading week this Monday. The latest quarterly update from National Australia Bank Ltd (ASX: NAB) shares was one of them.
Earlier today, NAB released its latest numbers for the quarter ending 30 June 2026. And it made for some interesting reading. As we went through this morning, NAB reported a 1% rise in cash earnings for the quarter to $1.83 billion. Statutory net profit was up a happy 32% to $1.81 billion, helped by a 2% bump in Australian business lending and a 2% rise in deposits.
However, it wasn't all green numbers. NAB also revealed that home loan applications were down 15% compared to the prior quarter. That's a trend that other ASX bank shares, including Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), have also reported lately.
ASX investors are reacting to NAB's news this Monday in the same manner that they received CBA's and Westpac's reports. They are hitting the sell button, and hard. NAB shares closed at $41.37 each last Friday. But today, they opened at $39.50 and have continued to drift lower. At the time of writing, the ASX 200 bank stock is at $39.16 a share, down a nasty 5.34% for the day thus far.
Many ASX investors, particularly those seeking big dividends, might see this as a buying opportunity. After all, as every good dividend investor knows, lower share prices mean a higher starting dividend yield, all else being equal.
So today, let's go over just how much NAB shares are yielding following this share price slump.
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NAB shares: Lower price means higher yield
To start with, let's go over NAB's most recent payouts. This ASX bank doled out its interim dividend just last month, with the final dividend preceding it in December last year. Both of these dividends were worth 85 cents per share, matching their prior corresponding payments in both instances. As is usually the case with NAB, both payouts came with full franking credits attached as well.
At last Friday's closing NAB share price, that $1.70 in annual dividends per share would have given the bank a trailing dividend yield of 4.11%.
However, after factoring in today's sell-off, NAB's dividend yield has now spiked to a more impressive 4.34% at the current price of $39.16. That grosses-up to a healthy 6.2% with the value of NAB's full franking credits.
Of course, NAB will need to hold its next two dividends at least in line with its last two for that trailing dividend yield to become a forward dividend yield. But even so, this just proves that buying quality dividend shares at the lowest possible price can help maximise one's dividend income.
