NAB Confirms Fully Franked AUD 0.85 Dividend with Multi-Currency Options
National Australia Bank has updated its dividend announcement, confirming a fully franked ordinary dividend of AUD 0.85 per share for the half-year ending March 2025, payable in multiple currencies.
- Ordinary fully franked dividend of AUD 0.85 per share
- Dividend relates to six months ending 31 March 2025
- Payment date set for 2 July 2025 with record date 13 May 2025
- Dividend payable in AUD, GBP, NZD, and USD at prevailing exchange rates
- Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) applicable with participation conditions
Dividend Update and Payment Details
National Australia Bank Limited (NAB) has issued an update to its dividend distribution announcement, confirming an ordinary fully franked dividend of AUD 0.85 per share for the six-month period ending 31 March 2025. This dividend reflects NAB’s ongoing commitment to returning value to shareholders amid a stable financial environment.
The dividend will be paid on 2 July 2025, with the record date set for 13 May 2025 and an ex-dividend date of 12 May 2025. Importantly, no external approvals are required prior to the payment date, streamlining the process for shareholders.
Multi-Currency Dividend Payments
In a move that underscores NAB’s international shareholder base, dividends will be paid not only in Australian dollars but also in British pounds (GBP), New Zealand dollars (NZD), and US dollars (USD). The foreign currency payments will be calculated based on prevailing market exchange rates as of 15 May 2025 at 4:00 pm AEST. This multi-currency approach offers flexibility and convenience for shareholders residing outside Australia.
Shareholders can also elect to receive dividends in a currency different from the default option based on their registered address or banking instructions, providing further customization to suit individual preferences.
Dividend Reinvestment and Bonus Security Plans
NAB’s Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) remain active for this dividend. The DRP allows shareholders to reinvest their dividends into additional NAB shares without a discount, with a participation limit set at 5 million shares per participant. The BSP, which issues new shares, is also available but closed to new participants since 2007.
Both plans have specific eligibility criteria, particularly for shareholders outside Australia, who must reside in permitted jurisdictions such as France, Hong Kong, Ireland, Japan, Malaysia, New Zealand, Singapore, or the United Kingdom to participate.
Tax and Franking Details
The dividend is fully franked at 100%, reflecting the corporate tax already paid by NAB on its earnings. This full franking provides Australian shareholders with valuable tax credits. Additionally, New Zealand imputation credits have been attached to the dividend, enhancing its attractiveness to investors in that market.
Further tax component information is available on NAB’s investor website, ensuring transparency and clarity for shareholders.
Bottom Line?
As NAB delivers a fully franked dividend with flexible currency options, investors will be watching closely how these arrangements influence shareholder uptake and market response.
Questions in the middle?
- How will currency fluctuations between announcement and payment affect foreign shareholders’ returns?
- What impact will the DRP participation limits have on shareholder reinvestment behavior?
- Could NAB adjust dividend policy or payment options in response to evolving global investor demographics?
