Day: December 17, 2022

Bought $1,000 of AMP shares 10 years ago? Here’s how much dividend income you’ve received

Boy looks confused as he adds up on an abacusBoy looks confused as he adds up on an abacus

Investors who bought AMP Ltd (ASX: AMP) shares at the start of 2022 have likely enjoyed a good year. The company’s stock has gained 40% since early January.

However, those who have held the financial services stock in their portfolio for a longer period – say a decade – are probably less happy with their investment.

The AMP share price has tumbled 70% since December 2012. Back then, $1,000 would probably have bought an investor 212 shares, each valued at $4.70.

Today, 212 shares would be worth just $296.80. The AMP share price closed Friday’s session at $1.40.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 57% in that time.

But have the dividends offered by AMP offset the blow? Let’s take a look.

How much have AMP shares paid in dividends in 10 years?

Here are all the dividends handed to those invested in AMP shares over the last 10 years:

AMP dividends’ pay date Type Dividend amount
October 2020 Special 10 cents
March 2019 Final 4 cents
September 2018 Interim 10 cents
March 2018 Final 14.5 cents
September 2017 Interim 14.5 cents
March 2017 Final 14 cents
October 2016 Interim 14 cents
April 2016 Final 14 cents
October 2015 Interim 14 cents
April 2015 Final 13.5 cents
October 2014 Interim 12.5 cents
April 2014 Final 11.5 cents
October 2013 Interim 11.5 cents
April 2013 Final 12.5 cents
Total:   $1.705

If one were to have bought AMP shares in December 2012 and held onto their investment over the years to come, they likely would have received a total of $1.705 per share in dividends.

That means our figurative $1,000 investment would have returned $361.46 in that time – meaning a shareholder would still be $341.74 in the red.

As the chart above shows, AMP hasn’t offered a regular dividend since 2019. Originally, the company said it would restart payouts on the sale of AMP Life, which occurred in 2020.

However, in the years since, it has chosen to forgo dividends in favour of maintaining balance sheet strength and conserving capital.  

Looking forward, the company expects to return the proceeds of the sale of Collimate Capital to shareholders. It also recently announced a $1.1 billion capital return.

Part of that is the company’s current $350 million on-market buyback. The remaining $750 million is expected to be returned via a combination of capital return, special dividend, or further buybacks.

Additionally, some experts have tipped AMP shares to restart dividends on the release of the company’s full-year results in February, as my Fool colleague Matthew reported in September.

The post Bought $1,000 of AMP shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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*Returns as of December 1 2022

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Motley Fool contributor Brooke Cooper 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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Future-proofing: The ASX ETF Aussie parents were buying for their kids in 2022

A man holds his baby on his lap at the dining room table while he looks at his laptop screen earnestly.A man holds his baby on his lap at the dining room table while he looks at his laptop screen earnestly.

Investing great Warren Buffett is widely reported to have bought his first stock at age 11. Now, the ‘Oracle of Omaha’ has a more than US$100 billion fortune.

It’s no wonder, then, that many Aussie parents looked to the stock market to kick-start their kids’ wealth in 2022. And in doing so, they apparently turned to one particular ASX exchange-traded fund (ETF).

The ASX ETF parents bought on behalf of their kids in 2022

Imagine waking up on your 18th birthday with a portfolio of ASX shares and ETFs waiting for you. Oh, the compounding that could have taken place over the years before one could walk, talk, or get a driver’s licence!

That might be the reality for many young Australians whose parents squirrelled money into the stock market on their behalf in 2022. But what investments were parents buying for their youngsters?

Well, those investing on behalf of their kids in 2022 turned to the Vanguard Australian Shares Index ETF (ASX: VAS). That’s according to data from trading and superannuation platform Superhero.

It recently released its annual Year in Trades review, finding the Vanguard Australian Shares ETF was the most traded Aussie ETF among minor accounts. Minor accounts can be opened by parents investing on behalf of their children.

The Vanguard Australian Shares Index ETF struggled alongside the broader market in 2022. It has fallen 8% year to date. Meanwhile, the benchmark All Ordinaries Index (ASX: XAO) only posted a slightly better performance, falling 7%.

But such volatility didn’t deter investors. Superhero CEO and co-founder John Winters said:

Over the last two years … we’ve seen our customers grow and evolve. There’s an understanding that markets work in cycles and as such the volatility we saw this year has been accepted as a natural market event – and an opportunity to continue building their wealth through investing.

And it wasn’t just Aussie ETFs that savvy parents were snapping up for their kids this year.

The Vanguard 500 Index Fund ETF (NYSEMKT: VOO) came in as the most popular US ETF among Superhero’s minor accounts. Meanwhile, Core Lithium Ltd (ASX: CXO) was the most traded ASX share.

Interestingly, Gen Z has also seemingly developed a taste for ETFs. The Betashares Nasdaq 100 ETF (ASX: NDQ) was the most traded stock among 18- to 25-year-olds using the platform and the Vanguard Australian Shares Index ETF came in second.

The post Future-proofing: The ASX ETF Aussie parents were buying for their kids in 2022 appeared first on The Motley Fool Australia.

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*Returns as of December 1 2022

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Vanguard Index Funds – Vanguard S&p 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. 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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Brokers name 2 ASX dividend shares to buy next week

If you’re looking for ASX dividend shares to buy, then you could do a lot worse than the two listed below.

Both of these ASX dividend shares have recently been named as buys by brokers. Here’s why they could be worth considering next week:

Healthco Healthcare and Wellness REIT (ASX: HCW)

According to a recent note out of Goldman Sachs, its analysts believe the Healthco Healthcare and Wellness REIT is in the buy zone for income investors. The broker currently has a conviction buy rating and $2.05 price target on the health and wellness focused real estate investment trust’s shares.

Goldman likes the company due to its strong balance sheet, positive tenant mix, and the resilient valuations in the healthcare sector. It is also positive on the future, noting that “the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities.”

As for dividends, the broker is expecting dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.70, this will mean yields of 4.4%.

Woolworths Limited (ASX: WOW)

Analysts at Citi have named this retail giant as a buy. According to the note, the broker has put a buy rating and $39.50 price target on its shares.

Its analysts appear relatively pleased with Woolworths’ decision to swap pokie machines for pet food and accessories following the acquisition of a 55% stake in Petspiration Group which will be funded from the partial selldown of its Endeavour Group Ltd (ASX: EDV) stake.

Outside this, the broker remains positive on Woolworths’ outlook and is forecasting double digit earnings growth in FY 2023 and FY 2024.

It expects this to lead to fully franked dividends per share of 104 cents in FY 2023 and 114 cents in FY 2024. Based on the current Woolworths share price of $34.31, this will mean yields of 3% and 3.3%, respectively.

The post Brokers name 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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*Returns as of December 1 2022

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Motley Fool contributor James Mickleboro 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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Would you be rich if you’d invested in these ASX shares 10 years ago?

Couple counting out money

Couple counting out money

As a big fan of buy and hold investing, I periodically pick out a number of popular ASX shares to see how much an investment 10 years ago would be worth today.

While not all shares beat the market, two that have are named below. Here’s how much a $10,000 investment a decade ago would be worth now:

Pilbara Minerals Ltd (ASX: PLS)

This lithium miner has been a sensational performer over the last decade. During this time, the company has gone from a mineral exploration company seeking “to acquire interests in mineral projects having good prospects for near-term development” to one of the world’s largest lithium miners.

Interestingly, 10 years ago, lithium wasn’t even on the menu for Pilbara Minerals. Gold and copper appeared to be the most likely path for the company but all that changed a couple of years later with the acquisition of the Pilgangoora Tantalum-Lithium Project.

This proved to be one of the best decisions the company would ever make and has helped drive the Pilbara Minerals share price materially higher since then. So much so, the company’s shares have generated an average annual return of approximately 65% over the period.

This would have turned a $10,000 investment in 2012 into a whopping $1.5 million today.

Xero Limited (ASX: XRO)

Another market beater over the last 10 years has been cloud accounting platform provider Xero.

Thanks to the shift from accounting on Excel spreadsheets or paper to online, Xero has been growing its subscriber numbers at a consistently strong rate since 2012. This has led to the platform hosting a massive 3.5 million users globally at the last count.

This has underpinned strong revenue growth, which has led to its shares delivering mouth-watering returns for investors over the period. Over the 10 years, Xero’s shares have generated an average annual return of 28.6%. This would have turned a $10,000 investment into almost $250,000.

The post Would you be rich if you’d invested in these ASX shares 10 years ago? appeared first on The Motley Fool Australia.

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*Returns as of December 1 2022

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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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