There are quite a few S&P/ASX 200 Index (ASX: XJO) shares that are reporting their latest earnings to investors this Monday. ASX health insurance stock NIB Holdings Ltd (ASX: NHF) is one of them. Unfortunately, investors did not like what they saw, with NIB shares currently down a nasty 10% to $6.66 each.
However, this represents a compelling buying opportunity for income investors.
Before we get into why, let's go over what NIB had to say this morning.
As my Fool colleague covered earlier today, it was an interesting earnings report to go through. NIB reported group revenues of $3.8 billion for its 2026 financial year, up 6.2% on what the company brought in over FY 2025. Group underlying profits were up 9.1% to $260.9 million, but statutory net profits after tax fell 5.9% to $186.9 million.
It seems investors did not like what they saw, going off the steep drop in NIB shares that we are currently witnessing.
But let's talk about income. NIB has always been a decent dividend stock. The company has substantially increased its income in recent years, going from paying out an annual 14 cents per share in fully franked dividends in 2020 to 29 cents per share in 2025.
2025's payouts consisted of an April interim dividend of 13 cents per share and an October final dividend of 16 cents per share. Both payments came fully franked, as is NIB's habit. The company's first dividend of 2026 matched that of the 2025 interim dividend, with shareholders once again bagging 13 cents per share.

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NIB shares drop despite new special dividend
Today, though, NIB threw some spice into the income soup. It declared a final dividend of 16 cents per share, once again matching 2025's ordinary payout. But it also unveiled a special dividend alongside its ordinary payout. Yep, shareholders are set to enjoy a concurrent dividend worth another 5 cents per share. That will bring NIB's dividend total for 2026 to 34 cents per share.
Right now, NIB shares are trading on a trailing dividend yield of 4.36% (boosted mightily by today's steep share price sell-off). However, we can now assign the stock a forward yield of 5.12%.
So does that make NIB a buy for income? Well, investors shouldn't take too much from this special dividend. It is entirely possible, even likely, that 2027's total payouts don't match what investors will receive in 2026. Special dividends by nature tend to be one-off events.
Saying that, this company occupies a defensive sector of the ASX and has a strong history of delivering dividend increases. As such, I would be happy to include it in a diversified income-focused portfolio.