Time To Look At ING? (ING, C, AIG)

ING Group NV (NYSE: ING) said today that it will begin resuming dividend payments once the Dutch government has been paid, after being bailed out during the 2008 financial crisis. Now could be a good time to get into ING shares, as we've seen that Citigroup (NYSE: C) and AIG (NYSE: AIG) shares have rebounded sharply once news came out that these companies would begin paying back the government in full.

CEO Jan Hommen spoke to shareholders, and said at the company's annual meeting that he wants to begin paying a "consistent" dividend policy in the future. "I can't say when, but we hope this will happen as soon as possible," he said.

ING has not paid a dividend since 2008, when it was bailed out. ING is not prevented from paying a dividend, but due to the terms of the bailout, it does not. ING would have to pay an extra fee to the Dutch government if it were to pay dividends on its common stock.

"If the current conditions persist and our results prove sustainable, then we can repay the state in 2012," Hommen said. "By then we'll look at our balance sheet. When we have a strong capital buffer, then we can resume dividend payments."

ING currently owes about EUR5 billion in state funds after being bailed out twice.

If ING is able to repay the Dutch government sooner than 2012, then shares could potentially be an attractive investment, as they are trading at 4.7 times 2012 earnings. The removal of the government overhang could send shares anywhere near $20 per share, which would be a 75% return to where shares are currently trading.

ING Groep N.V., a financial services company, provides banking, investment, life insurance, and retirement services worldwide.