Do you have any rationale for that comment or is it just a feeling?
Dividend last year was 30c phy (60c total) on a performance heavily impacted by impairment provisions and restricted to 50% payout ratio!
CBA have recently announced a much improved dividend with a 67% payout ratio but also stated they intended full year dividend to be in the 70 to 80% range (Once some looming uncertainties resolved).
As long as NAB do not have further major blow outs in Impairments this quarterly indicates (to me) improved dividend prospects.
I would expect NAB to also aim for a more conservative (than previously) payout ratio of 70 to 80% so full year dividend somewhere around $1 to $1-20 (50c to 60c phy) would appear a realistic and conservative projection.
(This level of return would be welcome by the market as yields are not expected to be what they were in current low interest economic environment)
Obviously before NAB have to worry about first half dividend we should have a much better understanding of economy after Job keeper etc so there is still a bit to play out, so this is just some initial thoughts.
NAB Price at posting:
$25.56 Sentiment: None Disclosure: Held
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