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Only 2 Days Left To Cash In On National Bank of Canada (TSE:NA) Dividend, Should You Buy?

Have you been keeping an eye on National Bank of Canada’s (TSE:NA) upcoming dividend of CA$0.62 per share payable on the 01 August 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 25 June 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at National Bank of Canada’s most recent financial data to examine its dividend characteristics in more detail. View out our latest analysis for National Bank of Canada

5 questions I ask before picking a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

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  • Is it the top 25% annual dividend yield payer?

  • Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

  • Has dividend per share risen in the past couple of years?

  • Can it afford to pay the current rate of dividends from its earnings?

  • Will it be able to continue to payout at the current rate in the future?

TSX:NA Historical Dividend Yield June 22nd 18
TSX:NA Historical Dividend Yield June 22nd 18

Does National Bank of Canada pass our checks?

The company currently pays out 41.15% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect NA’s payout to remain around the same level at 41.01% of its earnings, which leads to a dividend yield of 3.99%. Furthermore, EPS should increase to CA$6.1.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of NA it has increased its DPS from CA$1.24 to CA$2.48 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.

Relative to peers, National Bank of Canada has a yield of 3.91%, which is high for Banks stocks but still below the market’s top dividend payers.

Next Steps:

Taking into account the dividend metrics, National Bank of Canada ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three relevant aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for NA’s future growth? Take a look at our free research report of analyst consensus for NA’s outlook.

  2. Valuation: What is NA worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether NA is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.