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Highlights

  • NAB share price drops 2.5% to A$35.58 after trading ex-dividend on Monday
  • Investors who buy shares post ex-dividend date won’t receive the upcoming payout
  • Fully franked 85 cent dividend to be paid on 2 July to eligible shareholders

Shares of National Australia Bank Ltd (ASX: NAB) declined 2.5% to A$35.58 in early Monday trade after the bank’s stock began trading ex-dividend. This move reflects the standard market adjustment, as buyers of the stock from today onward are no longer eligible to receive the bank’s upcoming dividend payout.

Last week, NAB declared a fully franked dividend of 85 cents per share, which will be distributed on 2 July 2025 to shareholders on record before today. Fully franked dividends come with a tax credit that can be used to offset income tax, an appealing feature for income-focused investors. However, once shares go ex-dividend, it is common for the price to fall in line with the value of the payout.

The ex-dividend decline does not indicate a shift in investor sentiment about the bank’s performance but is rather a technical adjustment. Such price movements are typically short-term, with shares often stabilizing after the dividend value has been factored into the price.

NAB is one of Australia’s “big four” banks and remains heavily traded on the ASX 200 index, where the financial sector is a major component. The drop in NAB’s share price may impact the broader banking sector’s index reading for the day, especially given the bank's market capitalization and weighting.

Shareholders who held NAB stock before the ex-dividend date will still receive the July payout, while new buyers from today will not. This dividend event follows recent earnings updates and comes during a period of market focus on capital returns and interest margin performance among Australia’s major banks.