National Australia Bank has updated its dividend distribution details, confirming an 85-cent fully franked payout and finalising Dividend Reinvestment and Bonus Security Plan prices at $40.45 per share.
- Ordinary fully franked dividend of AUD 0.85 per share
- Dividend payable on 12 December 2025
- DRP and BSP prices set at AUD 40.45 with no discount
- DRP participation capped at 5 million shares per participant
- Foreign currency dividend payments available in GBP, NZD, and USD
Dividend Details and Payment Schedule
National Australia Bank Limited (NAB) has provided an update to its dividend distribution for the six-month period ending 30 September 2025. The bank confirmed an ordinary dividend of 85 Australian cents per share, fully franked, payable on 12 December 2025. The record date for shareholders entitled to the dividend was 12 November 2025, with the ex-dividend date set for 11 November 2025.
This dividend reflects NAB's ongoing commitment to delivering shareholder returns while maintaining a strong capital position amid a dynamic banking environment.
Dividend Reinvestment and Bonus Security Plans
NAB has finalised the pricing for its Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) at AUD 40.45 per share, with no discount applied. The DRP price is calculated as the arithmetic average of the volume weighted average price of NAB shares traded on ASX and Cboe Australia over a 10 trading day period from 18 November to 1 December 2025.
Notably, the DRP participation limit is set at 5 million shares per participant, ensuring broad shareholder access while managing plan scale. The DRP securities will be allocated through shares purchased by UBS Securities Australia Limited, rather than new issues. Conversely, BSP securities will be newly issued and rank pari passu from their issue date.
Foreign Currency Dividend Options and Shareholder Eligibility
For shareholders preferring foreign currency payments, NAB offers dividends in British Pounds (GBP), New Zealand Dollars (NZD), and US Dollars (USD) at exchange rates fixed as of 14 November 2025. Shareholders can elect their preferred currency, with default payments made according to registered addresses or banking instructions.
Participation in the DRP and BSP is restricted for shareholders outside Australia who do not reside in permitted jurisdictions, which include France, Hong Kong, Ireland, Japan, Malaysia, New Zealand, Singapore, and the United Kingdom. This ensures compliance with regulatory requirements across different markets.
Participation and Market Implications
As of this update, participation in the DRP and BSP represents 8.1% of NAB's issued capital, indicating a moderate level of shareholder engagement with these plans. The absence of a discount on DRP and BSP prices suggests NAB is confident in its share price stability and shareholder value proposition.
Investors should note the shift away from AUD cheque payments, with dividends now paid exclusively via direct credit to nominated bank accounts, reflecting broader industry trends towards electronic payments.
Bottom Line?
NAB’s steady dividend and clear DRP/BSP terms set the stage for shareholder returns amid evolving market conditions.
Questions in the middle?
- Will DRP and BSP participation increase beyond the current 8.1% in coming periods?
- How might foreign currency dividend payments impact shareholder preferences and NAB’s currency risk management?
- Could NAB consider introducing a discount on DRP or BSP prices in future to incentivize greater participation?