The board of ING Groep N.V. (AMS:INGA) has announced that it will pay a dividend of €0.35 per share on the 11th of August. This means that the annual payment will be 5.4% of the current stock price, which is in line with the average for the industry.\n\nThe board of ING Groep N.V. (AMS:INGA) has announced that it will pay a dividend of €0.35 per share on the 11th of August. This means that the annual payment will be 5.4% of the current stock price, which is in line with the average for the industry.\n\nUnless the payments are sustainable, the dividend yield doesn't mean too much.\n\nHaving distributed dividends for at least 10 years, ING Groep has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 69%, which means that ING Groep would be able to pay its last dividend without pressure on the balance sheet.\n\nOver the next 3 years, EPS is forecast to expand by 72.8%. The future payout ratio could be 51% over that time period, according to analyst estimates, which is a good look for the future of the dividend.\n\nThe company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from €0.12 total annually to €1.06. This works out to be a compound annual growth rate (CAGR) of approximately 24% a year over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious.\n\nThe Dividend Looks Likely To Grow\n\nWith a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. ING Groep has impressed us by growing EPS at 10% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.\n\nWe Really Like ING Groep's Dividend\n\nOverall, we like to see the dividend staying consistent, and we think ING Groep might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

ING Groep (AMS:INGA) Will Pay A Dividend Of €0.35

ING Groep N.V. announced a dividend of €0.35 per share to be paid on August 11, 2025, representing 5.4% of the current stock price. The payout ratio is 69% based on recent earnings, with forecasts indicating 72.8% EPS growth over three years and a potential future payout ratio of 51%. The company has maintained a dividend track record since 2015, with annual dividends increasing from €0.12 to €1.06, reflecting a 24% CAGR.