National Bank dividend
National Bank pays C$1.32 per share each quarter, and annual dividends per share rose from C$2.84 to C$4.64 across the five-year record. National Bank retained more common earnings than it distributed, so its earnings covered dividends while buybacks remained the smaller return of capital.
How much does National Bank pay in dividends?
Dividends rise gradually in the base case from the current quarterly rate of C$1.32. Annual DPS increased from C$2.84 to C$4.64 across the five-year record, which supports continued resilience. The base path reaches C$6.08 by 2029; the bear freezes at C$5.28, while the bull reaches C$6.56. The higher paths require earnings growth and capital capacity within the 40–50% payout target.
| Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 10.07 | 10.68 | 9.24 | 9.61 | 8.85 |
| − Dividends, per share | 4.61 | 4.28 | 3.94 | 3.54 | 2.81 |
| − Share buybacks, per share | 0.56 | 0.00 | 0.00 | 0.72 | 0.00 |
| = Kept, per share | 4.90 | 6.40 | 5.30 | 5.36 | 6.04 |
What this means. The 11.6% increase in diluted shares means each share represents a smaller piece of the company, even though the company spent money buying back some shares.
Does National Bank cover its dividend with what it earns?
Across the five fiscal years ending October 2025, National Bank retained more common earnings than it distributed. Dividends grew, while buybacks remained the smaller return of capital. The table follows net income through claims, common dividends, buybacks, retained capital, adjusted earnings, payouts, acquisitions, new shares sold and the remaining measure.
| Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| = Earnings for common shareholders | 3,852 | 3,663 | 3,150 | 3,277 | 3,017 |
| − Dividends declared on common shares | 1,763 | 1,468 | 1,344 | 1,206 | 958 |
| − Share buybacks | 213 | 0 | 0 | 245 | 0 |
| = Kept to grow and build capital | 1,876 | 2,195 | 1,806 | 1,826 | 2,059 |
| Paid out, % of earnings for common | 51.3% | 40.1% | 42.7% | 44.3% | 31.8% |
What this means. The bank's own dividend payout ratio is lower because it uses its adjusted profit and counts only dividends, while we use reported profit and count dividends plus share buybacks.
What could change National Bank’s dividend?
The base case would gain support if fiscal 2026 cost and funding synergies reached C$270 million, then credit costs leveled off through fiscal 2027 and beyond. Adjusted EPS growing within management’s 5–10% range would support the assumed dividend and buyback path.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Book value | 32,860 (32,560 / 33,010) | 34,760 (33,960 / 34,760) | 36,860 (35,460 / 36,910) |
| Shares (millions) | 373 (378 / 372) | 367 (376 / 363) | 361 (374 / 354) |
| Dividends per share | 5.44 (5.28 / 5.60) | 5.76 (5.28 / 6.08) | 6.08 (5.28 / 6.56) |
| Price to book value | 2.45 (1.90 / 2.60) | 2.45 (1.65 / 2.75) | 2.45 (1.43 / 2.88) |