The first AMP dividend in over 4 years is being paid today. Here’s the lowdown

We seem to be enjoying yet another positive day on the ASX share market this Monday. After last week’s five-for-five gains, the S&P/ASX 200 Index (ASX: XJO) is pushing higher again today, currently up by a healthy 0.83% at back over 7,230 points. It’s also a good day for AMP Ltd (ASX: AMP) shareholders too, thanks to some dividend news. 

AMP shares are on fire today. The ASX 200 financial services veteran closed at $1.05 a share last week. But today, the AMP share price has boomed by an impressive 4.3% up to $1.10 a share.

This gain might just be some rubber banding going on. On Friday last week, a day when the ASX 200 jumped convincingly, the AMP share price cratered by a nasty 2.78%. This was probably thanks to the news that AMP shareholders rejected the company’s remuneration report at the annual general meeting.

Today, all seems forgotten:

But this 4.3% rise comes on top of some good news regarding AMP’s latest dividend. To sum it up, today is AMP’s dividend payday.

AMP shareholders are about to get a dividend payday

Yes, it’s been quite a while since investors were treated to a dividend from AMP shares. In fact, the company’s last dividend payment came over four years ago, back in 2019.

But when AMP announced its latest full-year earnings to the markets back in February, it included a final dividend of 2.5 cents per share, partially franked at 20%. That was despite the company reporting a 34% drop in underlying net profits after tax (NPAT) to $184 million.

So this new dividend is arriving in eligible shareholders’ bank accounts today. That’s after the company traded ex-dividend back on 1 March. Any investors who bought AMP shares on or after that date will miss out on this latest dividend.

But for anyone who owned the shares before that date, today is your day. AMP also has a dividend reinvestment plan (DRP) in place for this dividend, so for shareholders who opted for the DRP, today is the day you will be issued your additional shares. 

AMP has turned its focus to rewarding long-suffering shareholders this year. In addition to its first dividend in four years, AMP is also in the midst of conducting a $350 million share buyback program as well.

Today’s 2.5 cents per share dividend now gives the AMP share price a dividend yield of 2.27%.             

The post The first AMP dividend in over 4 years is being paid today. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• AMP share price slips amid expected first strike on remuneration
• Here are the top 10 ASX 200 shares today
• Sunk $3,000 into AMP shares 5 years ago? Here’s how much passive income you’ve realised
• Are AMP shares set to become a dividend machine?

Motley Fool contributor Sebastian Bowen 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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