The National Australia Bank Ltd (ASX: NAB) share price has seen its fair share of ups and downs over the last year, as the chart below shows. After the decline, it's a good time to consider whether the business is attractive for its dividend yield.
The ASX bank share normally offers a pleasing payout because of its fairly generous dividend payout ratio and relatively low price/earnings (P/E) ratio.
A declining share price can present an opportunity because it boosts the dividend yield on offer. If a share price falls 10%, then the dividend yield is boosted by 10%. For example, if the dividend yield was 6% and the share price fell by 10%, the dividend yield would become 6.6%.
Let's take a look at the appeal of the dividend yield and consider whether the NAB share price is appealing to buy.
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Dividend yield from the ASX bank share
The ASX bank share has regularly paid investors a good dividend yield thanks to its rewarding payouts.
Analysts think the ASX bank share's dividend could be consistent and reliable in the 2026 financial year.
According to the projection on Commsec, the business is forecast to pay an annual dividend per share of $1.70. That translates into a dividend yield of 4.3% excluding franking credits and 6.1% including franking credits.
The business is forecast to increase its dividend per share in the 2027 financial year. That translates into a dividend yield of 4.4% excluding franking credits and 6.2% including franking credits.
Is the NAB share price a buy?
Analysts are a bit mixed on the ASX bank share right now.
According to Commsec's collation of analyst recommendations about the business, there are currently three buy ratings, seven hold ratings and five sell ratings. While a hold is the most popular rating, the other ratings lean a bit more negative than positive.
NAB recently announced its FY26 third-quarter update, showing it generated $1.83 billion in cash earnings, representing 4% year-over-year growth. Cash earnings rose 2% compared to the FY26 first-half quarterly average.
Earnings growth was driven by 5% year-over-year growth in revenue. Total lending and acceptances rose 6% year-over-year to $817.4 billion, with 4% growth in housing loans to $451.4 billion and 9% growth in housing loans to $352.4 billion.
Based on the projections on Commsec, the NAB share price is valued at 16x FY26's estimated earnings.
The dividend yield is decent without being significant; however, analysts seem to think there's better value elsewhere.
