NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

The entire banking sector offers extremely lucrative dividend yields. It’s easy to see why bank stocks are a favorite amongst yield investors. This article will report in detail, the NAB Dividend.

Over the past decade, NAB shareholders have enjoyed on average 8.94% per year from the dividend.

NAB Dividend Summary

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date
DPS (Trailing 12-Month)$0.90
Gross DPS (Trailing 12-Month)$1.2857
Dividend yield3.25%
Gross yield4.64%
Payout Ratio42%
DRPYes
DRP DiscountsNo

NAB Dividend Dates 2021

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date
TypeInterimFinal
Results Reporting6 May 20219 Nov 2021
Declaration date6 May 20219 Nov 2021
Ex-div date13 May 202115 Nov 2021
Record Date14 May 202116 Nov 2021
Pay date2 July 202115 Dec 2021

NAB Dividend History Graph

The Banking sector has been one of the favorites for investors over the years due to its decent returns and solid dividend history. It’s no surprise why the sector makes up around 30% of the entire market index. Over the past decade, big banking stocks have managed to maintain a steady flow of income for investors, with an exception of the COVID dip.

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NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

NAB typically announces a dividend with the release of its half-year results in May and full-year results in November as seen in their financial calendar. NAB Dividends are typically paid twice a year, in July (interim dividend) and December (final dividend).

NAB has paid biannual dividends every year since 1982. Including the COVID-19 recessionary period. Most dividends have been fully franked. They also offer a Dividend Reinvestment Plan (DRP). We did see them reduce franking to 80-90% from 2005 to 2006.

NAB Dividend Yield Comparison

NAB’s current gross dividend yield is around 4.64%. This is in line with the other four big banks (CBAWBC, ANZ).

The current NAB yield of 4.64% far exceeds the Average Term Deposit rate of 0.4%

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

Net NAB Dividend Yields Over Time

We can see NAB’s net dividend yield has averaged a rate of around 7%. From this, we can see NAB’s current net yield of 3.25% is below its historic average.

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

We can see the yield spike in 2020 due to a significant share price reduction. This yield tapered off as the share price increased, but earnings were still impacted. We are expecting earnings to return in 2021.

NAB Dividend Payout Ratio and Policy

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

A companies dividend payout ratio is the ratio of the total dividend sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.

Based on current averages NAB’s payout ratio is 57%, which we expect to increase in the coming years to a ratio of 72%.

So far in 2021, we have seen NAB payout its interim dividend of 60 cents.

In last year’s FY20 results NAB paid out 60 cents per share to investors. This comprised an interim dividend of $0.3 and a final dividend payment of $0.3 which was fully franked.

We note in this report NAB announced a payout ratio of 48%, in line with AHPRAs guidelines. These guidelines are based upon maintaining liquidity in the current recessionary period.

“Banks should seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”

APRA has indicated that for the remainder of the calendar year boards should: 

  • seek to retain at least half of their earnings when making decisions on capital distributions (and utilise dividend reinvestment plans and other initiatives to offset the diminution in capital from capital distributions where possible)

With APRA and RBNZ easing bank dividend restrictions, payout ratios are again increasing

The amount that is not paid to shareholders is retained by the company to pay off debt or to reinvest in core operations. It is sometimes simply referred to as the ‘payout ratio.’

NAB Share Price

NAB Dividend Policy

Future Payout Ratio: 65-75%

NAB has no recorded Dividend Policy. From past results, the group seems to target a payout ratio of 70-80%, which is common amongst the banks. They also appear to target fully-franked dividends.

“Future dividends to be guided by a payout ratio range of 65-75% of cash earnings, subject to Board determination based on circumstances at the relevant time”

NAB HY21 Results

With the commencement of the 2021 calendar year, AHPRA’s 50% payout guideline is no longer current, as such, we will expect NAB to return to a more normalized payout ratio.

When will my NAB Dividends be Paid?

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

The Bank typically announces a dividend with the release of its half-year results in May and full-year results in November.  Dividends are typically paid twice a year, in July (interim dividend) and December (final dividend).  Payment dates are listed on the financial calendar

NAB Dividend Reinvestment Plan (DRIP)

NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend. 

The simplest way to elect to participate in a company’s DRIP is through the related share registry (i.e. Computershare or Link Market Services).

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  • In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
  • On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.

For more information check out our ASX DRIP VS NON-DRIP Guide

The Return of Dividends

Following the loss of earnings, we saw companies cut dividends across the board, leading to a massive reduction in the average dividend yield across the market. Now averaging below 4%. We saw the 4 big banks, which are known as massive dividend stocks, cut their yield by around 50% in 2020.

We saw the big four banks, cut dividends by around 50% in 2020

Following the return of earnings, we are expecting to see dividends returning to very attractive yields. Though we can’t expect past payout ratios, as many companies will elect to hold a large amount of cash on hand to strengthen their balance sheet against future uncertainties.

In 2021 we are expecting to see the big banks return more than $30 Billion to shareholders.

Across the market, we are expecting to see payout ratios increase by more than 10%. Which will have a big impact on the average yield rate. We are expecting to see the big banks return more than $30 Billion to shareholders.

NAB Share Buy-Back

In July NAB announced an on-market buy-back of up to $2.5 billion of ordinary shares.

NAB’s strong financial performance, combined with the divestment of MLC Wealth, has created an opportunity for NAB to reduce our surplus capital while retaining a strong balance sheet during these uncertain times.

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Capital impact

NAB continues to operate well above APRA’s Unquestionably Strong benchmark of 10.50%, with a reported CET1 capital ratio of 12.37% at Level 2 and 12.40% at Level 1 as at 31 March 2021.

The $2.5 billion on-market buy-back will reduce the CET1 capital ratio at Level 2 by around 60 basis points.

What is a Buy-Back?

A share repurchase is where a company will buy back its shares from investors. This can be completed one of two ways; via an on-market buyback or off-market buyback.

In the on-market method, the company will directly go to the market and repurchase their shares from those selling, as any regular investor would.

The company will then either cancel the shares or hold them, so as they are not publicly traded. The EPS of the company will be artificially raised as the formula earnings/shares have been altered whereas the number of shares PE may temporarily decrease due to an increase in EPS. Learn more about Share Buy-Backs Here.

NAB Dividend History

Payment
type
Payment dateEx-dividend dateDividendFranking
level %
2021 Interim2 July 202113 May 202160 cents100
2020 Final10 December 202012 November 202030 cents100
2020 Interim3 July 20201 May 202030 cents100
2019 Final12 December 201914 November 201983 cents100
2019 Interim3 July 201914 May 201983 cents100
2018 Final14 December 20188 November 201899 cents100
2018 Interim5 July 201815 May 201899 cents100
2017 Final13 December 20179 November 201799 cents100
2017 Interim5 July 201716 May 201799 cents100
2016 Final13 December 20164 November 201699 cents100
2016 Interim5 July 201617 May 201699 cents100
2015 Final15 December 20155 November 201599 cents100
2015 Interim3 July 201515 May 201599 cents100
2014 Final16 December 20147 November 201499 cents100
2014 Interim8 July 201414 May 201499 cents100
2013 Final18 December 20137 November 201397 cents100
2013 Interim16 July 201330 May 201393 cents100
2012 Final18 December 20129 November 201290 cents100
2012 Interim16 July 201231 May 201290 cents100
2011 Final19 December 201110 November 201188 cents100
2011 Interim6 July 20112 June 201184 cents100
2010 Final17 December 201012 November 201078 cents100
2010 Interim8 July 20104 June 201074 cents100
2009 Final17 December 200913 November 200973 cents100
2009 Interim9 July 20094 June 200973 cents100
2008 Final17 December 20087 November 200897 cents100
2008 Interim10 July 200830 May 200897 cents100
2007 Final18 December 200716 November 200795 cents100
2007 Interim12 July 20071 June 200787 cents90
2006 Final12 December 200610 November 200684 cents90
2006 Interim13 July 20062 June 200683 cents80
2005 Final19 December 200521 November 200583 cents80
2005 Interim13 July 20052 June 200583 cents80
2004 Final8 December 200415 November 200483 cents100
2004 Interim14 July 20047 June 200483 cents100
2003 Final10 December 200317 November 200383 cents100
2003 Interim2 July 20036 June 200380 cents100
2002 Final11 December 200218 November 200275 cents90
2002 Interim3 July 20027 June 200272 cents100
2001 Final12 December 200119 November 200168 cents100
2001 Interim4 July 20018 June 200167 cents100
2000 Final13 December 200020 November 200064 cents100
2000 Interim5 July 20009 June 200059 cents100
1999 Final15 December 199922 November 199958 cents79
1999 Interim21 July 199928 June 199954 cents100
1998 Final16 December 199819 November 199853 cents100
1998 Interim22 July 199825 June 199849 cents100
1997 Final17 December 199720 November 199749 cents100
1997 Interim22 July 199726 June 199745 cents100
1996 Final22 January 199717 December 199644 cents100
1996 Interim10 July 199613 June 199643 cents100
1995 Final24 January 199643 cents100
1995 Interim12 July 199540 cents100
1994 Final18 January 199539 cents100
1994 Interim8 July 199435 cents100
1993 Final19 January 199426 cents100
1993 Interim9 July 199324 cents100
1992 Final20 January 199323 cents100
1992 Interim10 July 199222 cents100
1991 Final22 January 199223 cents100
1991 Interim12 July 199122 cents100
1990 Final23 January 199129 cents100
1990 Interim13 July 199026 cents100
1989 Final24 January 199025 cents100
1989 Final 24 January 199010 cents 100
Special17 March 198910 cents100
1989 Interim14 July 198925 cents100
1988 Final25 January 198917 cents100
1988 Final25 January 198918 cents 100
1988 Interim15 July 198815 cents100
1987 Final27 January 198812.5 cents100
1987 Interim10 July 198712.25 cents100
1986 Final23 January 198714.5 cents100
1986 Interim11 July 198614.5 cents100
1985 Final23 January 198614 cents100
1985 Interim12 July 198513.5 cents100
1984 Final14 December 198412.5 cents100
1984 Interim12 June 198412.5 cents100
1983 Final16 December 198312 cents100
1983 Interim27 June 198311 cents100
1982 Final30 December 198212 cents100
1982 Interim25 June 198211 cents100
NAB Dividend, NAB Dividend dates, NAB dividend History, NAB dividend yield, NAB dividend record date

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