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July 18, 2005
ING Group Perpetual Debt, Mon., July 18, 2005, 3:08 PM
ING Group is a Dutch-based global financial institution that offers banking, insurance and asset management, via 115,000 people, to over 60 million private, corporate and institutional clients in 60 countries. The Company has a strong computer-based bank savings account offering that handily beats the competition. But, it also offers another interesting security.
The common stock trades as ADR's on the NYSE under the ticker symbol ING, but what interests me today is that ING Group also has a perpetual debenture that trades on the NYSE under the ticker symbol IND. I don't think too many traders are aware of it.
At 2:00pm ET today, IND traded at $26.30. This perpetual debt security pays an annual dividend of $1.764 to yield 6.70 pct. The last dividend payout was $0.441 on May 27.
The security has traded as low as $25.63 recently, which then yielded almost 6.9 pct.
If you can manage to buy just before one quarterly dividend and sell right after the fifth one, you could increase your annual yield to almost 8.5 pct, which is a pretty fair result given the solid credit involved with this company.
Posted by Posted by Bill Cara on July 18, 2005 03:09:32 PM | Category: Special Situation Equities
The yield to call is just under 5%.
Posted by: JoeC at July 18, 2005 5:50 PM [link]