ING Bank Slaski S.A. (WSE:ING) Goes Ex-Dividend Soon

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see ING Bank Slaski S.A. (WSE:ING) 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 as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase ING Bank Slaski's shares before the 16th of April in order to be eligible for the dividend, which will be paid on the 6th of May.

The company's next dividend payment will be zł33.35 per share, and in the last 12 months, the company paid a total of zł33.35 per share. Looking at the last 12 months of distributions, ING Bank Slaski has a trailing yield of approximately 9.5% on its current stock price of zł349.50. If you buy this business for its dividend, you should have an idea of whether ING Bank Slaski's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for ING Bank Slaski

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. ING Bank Slaski paid out 98% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances.

When the dividend payout ratio is high, as it is in this case, the dividend is usually at greater risk of being cut in the future.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see ING Bank Slaski's earnings have been skyrocketing, up 24% per annum for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, ING Bank Slaski has lifted its dividend by approximately 22% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

To Sum It Up

Is ING Bank Slaski worth buying for its dividend? ING Bank Slaski has been generating credible earnings per share growth, although its dividend payments were not adequately covered by earnings. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

So if you want to do more digging on ING Bank Slaski, you'll find it worthwhile knowing the risks that this stock faces. Our analysis shows 1 warning sign for ING Bank Slaski and you should be aware of it before buying any shares.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.