Published on 18 Apr 2024 on Simply Wall St. via Yahoo Finance

Dividend Investors: Don't Be Too Quick To Buy ING Groep N.V. (AMS:INGA) For Its Upcoming Dividend

ING Groep N.V. (AMS:INGA) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase ING Groep's shares before the 24th of April in order to be eligible for the dividend, which will be paid on the 3rd of May.

The company's upcoming dividend is €0.756 a share, following on from the last 12 months, when the company distributed a total of €1.11 per share to shareholders. Last year's total dividend payments show that ING Groep has a trailing yield of 7.3% on the current share price of €15.168. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether ING Groep can afford its dividend, and if the dividend could grow.