The AMP Ltd (ASX: AMP) share price is down 0.8% at the time of writing, having opened down 2.5%.
The diversified ASX financial share closed yesterday trading for $1.035. Shares are currently changing hands for $1.027 after dipping to $1.01 in earlier trade, down 2.5 cents.
So, why is the AMP share price in the red today?
AMP dividend returns from hiatus
In announcing its full-year financial results on 16 February, the AMP board declared a dividend payout for the first time since 2020.
Despite statutory net profit after tax (NPAT)Â coming in at $387 million â after posting a $252 million loss the prior year â the AMP share price closed the day down 13% on the results.
That fall was likely spurred by a 13% decline in the companyâs assets under management over the year (AUM), which dropped to $124.2 billion.
But income investors were rewarded with a dividend of 2.5 cents per share, 20% franked.
Which brings us back to why the AMP share price is sinking.
The stock trades ex-dividend today. Meaning investors buying shares this morning will no longer be entitled to the 2.5 cents per share payout.
Itâs common for stocks to fall by a fairly similar amount to their dividend on the day they trade without that payment.
Investors who did hold shares at yesterdayâs close can expect payment on 3 April.
AMP also offers a dividend reinvestment (DRP) plan for interested investors. Thatâs open to any shareholders who are residents of Australia or New Zealand and have a registered address there.
The AMP dividend will be paid in Aussie dollars regardless of where you live.
AMP share price snapshot
As you can see in the chart below, the AMP share price is down 20% in 2023 but remains up 6% over the past 12 months.
The post Why is the AMP share price sinking today? appeared first on The Motley Fool Australia.
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More reading
- These ASX 200 shares were crushed in February
- Hoping to bag the newly reinstated AMP dividend? Read this
- 7 ASX 200 shares with ex-dividend dates next week
- Here are the 3 most heavily traded ASX 200 shares on Thursday
- Are AMP shares finally cheap enough to buy following Thursdayâs 13% crash?
Motley Fool contributor Bernd Struben 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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