National Australia Bank Ltd (ASX: NAB) shares could be a pleasing passive income option, depending on what dividends the ASX bank share ends up paying.
Banks like NAB have can deliver a solid dividend yield thanks to its fairly low price/earnings (P/E) ratio and generous dividend payout ratio.
NAB's profit is fairly consistent due to the nature of banking. Borrowers repay their loans every month, providing NAB with resilient cash flow.
Let's take a look at what experts expect for NAB's dividend in the coming years.
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FY26
We're close to the end of the 2026 financial year for NAB, which ends in September 2026. The last we heard from the ASX bank share was the three months to 30 June 2026.
Its FY26 third quarter saw the bank generate statutory net profit after tax (NPAT) of $1.81 billion, an increase of 32% compared to the quarterly average of the FY26 first half.
Revenue grew by 2% compared to the first-half FY26 quarterly average, and 5% year-over-year. Cash earnings of $1.83 billion were up 4% year-over-year, and 2% compared to the FY26 first-half quarterly average.
It's not a lot of growth, but it's growth nonetheless at a difficult time.
Its credit impairment charges came to $299 million. Within that, its collective provision charges were $119 million, driven by business lending volume growth and a deterioration in performing book asset quality. It's something to keep an eye on amid higher interest rates and potential stress related to the Middle East conflict.
According to the projection on CMC Invest, NAB could pay an annual dividend per NAB share of $1.70, which would be the same as FY25.
FY27
The 2027 financial year could see an improvement in the bank's financials, according to the earnings and dividend projections. Forecasts are not guaranteed to happen of course, but I think any growth during the current period would be impressive.
According to the projection on CMC Invest, the ASX bank share is forecast to slightly increase its annual payout to $1.705 per NAB share.
FY28
The final year of this series of projections could be the best of all for shareholders of National Australia Bank.
The forecast on CMC Invest suggests that the business could accelerate the growth of its dividend, taking the annual payout to $1.73 per NAB share.
At that potential level, the ASX bank share could deliver a grossed-up dividend yield of 6.4%, including franking credits, at the time of writing.
