Shares of AMP Ltd (ASX: AMP) are rangebound on Thursday and now trade less than 1% in the red at $1.08 apiece.
AMP has copped its fair share of flack in the past 12 months with its share price oscillating heavily across the period. Yet, it still holds a 2% gain in that time following a 7% lift in 2022.
One firm sees a huge lift in AMP’s dividend
Analysts at Bloomberg Intelligence have turned bullish on AMP and reckon the insurance giant can post a dividend yield well above what the consensus is pricing in for 2022.
In a recent note, Bloomberg Intelligence analysts Matt Ingram and Jack Baxter are constructive on AMP’s capital position and reckon this could bode in well for total shareholder return.
“AMP may achieve 15% dividend yield this year vs. consensus’ 3%, despite stating it’s not in a position to resume regular payouts to ‘hold a strong capital position’,” the pair wrote.
“This curbs our expected A$1 billion 2022 payout and more than 20% yield,” they added.
Yet yield will get a boost on its plan to return of a majority of proceeds from the sale of Collimate Capital businesses, which we think could top A$500 million
The analysts continued on by saying that AMP’s restructuring is aligned with the sale of the global equities and fixed income division from AMP Capital back in March.
This should free up additional capital, they say, that could ultimately be re-routed back to shareholders in the form of dividends.
Should the pair’s forecasts eventuate then AMP shareholders are in for a certain treat come the time of AMP’s next earnings announcement.
AMP share price snapshot
The AMP share price has managed to hold a 7% gain this year to date following a 3% gain in the past month of trade.
Shares have cooled off in recent weeks however, with the stock falling from a high of $1.21 on 5 May.
The post Can the AMP dividend yield really push to 15%? appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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