In one of my previous articles, I already looked at the underlying financials. In this article, I will have a look at ING's dividend history and determine whether it is worth investing in the company.
Based on ING's dividend history it can be expected that dividends will grow the coming years. For the comings years an annual dividend slightly higher than €0.50 seems to be reasonable.
Dividend yieldThe dividend yield historically has been in the region of 3%-5%, which is quite good for an AEX stock.
Using the current stock price and future earnings projects a 4% yield is within reach.
Dividend payout ratioING's dividend policy is quite nice with a minimal divident payout ratio of 40%.
Price multipleTaking into account a price multiple for sector peers a stock price of>€16 purely based on valuation with a dividend yield of >3% seems to be fair.
[Full Article Here]