Hoping to bag the newly reinstated AMP dividend? Read this

A businessman holding a butterfly net looks up trying toi catch a multi-bagger ASX share

A businessman holding a butterfly net looks up trying toi catch a multi-bagger ASX share

Shareholders of AMP Limited (ASX: AMP) will soon be allocated their entitlement to the 2022 financial year final dividend.

AMP investors have had to wait for a few years since the last dividend payment. But a return to profitability and successful divestment of assets has meant that AMP has some money to return to shareholders.

AMP dividend details

AMP announced with its 2022 financial year result that it’s going to pay a final dividend of 2.5 cents per share, with a franking credit level of 20%.

This came after the business generated an underlying net profit after tax (NPAT) of $184 million. Its statutory net profit after tax was $387 million, which was a large turnaround from the $252 million loss in FY21.

The announced dividend is part of a $1.1 billion capital management program, which has also involved a share buyback.

In terms of the dates, the AMP dividend is going to be paid on 3 April 2023.

However, the ex-dividend date is 1 March 2023. That means that investors who want to receive the dividend need to own shares before this date. In other words, an investor needs to own shares by 28 February 2023 (tomorrow) to receive the dividend from AMP.

AMP also said that there is an option to utilise the company’s dividend re-investment plan (DRP). The financial share said that the DRP election date is 3 March 2023 at 5pm, with no discount applied to the DRP price.

Will there be more payments to come?

When talking about its capital position and shareholder returns, AMP said that it continues to maintain “prudent” levels of capital given the challenging macroeconomic environment.

Its FY22 capital position of $3 billion includes $1.4 billion to meet regulatory requirements, a $699 million board buffer to cover potential impacts of operational, market, or regulatory change as well as product-related risks, and $923 million of surplus capital.

Target capital levels are expected to “reduce” after the completion of the remaining AMP Capital sales.

Of the $1.1 billion capital return to shareholders, it is working on a $350 million share buyback, with $267 million completed at 31 December 2022.

The announced dividend will return $400 million.

AMP said that there will be other capital management initiatives in FY23, with up to $350 million to be announced to complete the $1.1 billion commitment.

Whether it’s a dividend or share buyback, it seems AMP is planning to send more capital to shareholders in 2023.

AMP share price snapshot

Despite the positive news, the AMP share price is down 17% since the start of 2023.

The post Hoping to bag the newly reinstated AMP dividend? Read this appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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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