Why ING Groep (ING) is a Great Dividend Stock Right Now

Company Overview - ING Groep is headquartered in Amsterdam and operates in the Finance sector, with a stock price change of 32.74% since the beginning of the year [3] - The company currently pays a dividend of $0.68 per share, resulting in a dividend yield of 6.55%, significantly higher than the Banks - Foreign industry's yield of 3.39% and the S&P 500's yield of 1.57% [3] Dividend Performance - The annualized dividend of ING Groep is $1.36, reflecting a 33.7% increase from the previous year [4] - Over the past 5 years, ING Groep has increased its dividend three times year-over-year, with an average annual increase of 45.79% [4] - The current payout ratio is 31%, indicating that the company paid out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for ING Groep appears solid, with the Zacks Consensus Estimate for 2025 projected at $2.24 per share, representing a year-over-year growth rate of 4.67% [5] Investment Considerations - Dividends are favored by investors for various reasons, including tax advantages and risk reduction in portfolios, although not all companies provide quarterly payouts [6] - High-growth firms or tech start-ups typically do not offer dividends, while larger, established companies are often viewed as better dividend options [7] - ING Groep is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]