The AMP Ltd (ASX: AMP) share price has been on a downwards spiral after announcing its full-year results last month.
The financial services company delivered a mixed performance due to challenging trading conditions for the backend of the financial year.
At the time of writing, AMP shares are swapping hands for 92.2 cents, up 1.32%.
What happened to the AMP dividend?
In an effort to conserve its capital position, the board opted not to declare a final 2021 dividend.
The board noted that to support the transformation of the business going forward, a conservative approach to capital management was best.
As such, shareholders reacted on the day by initially driving up the AMP share price by almost 6%, but this was short-lived. Since 10 February when the company reported its financial scorecard, AMP shares have declined by around 15%.
Internal net cash outflows include the group’s payments such as dividend payments from Australian wealth management.
In FY21, internal AUM decreased to $83 billion from $86.7 billion at FY20. This primarily related to the transition of $9.2 billion from the New Zealand wealth management.
Nonetheless, the board did state that following the completion of the demerger in H1 FY22, AMP’s capital management strategy and dividends will be reviewed.
Previously, AMP declared a special fully franked dividend of 10 cents per share in FY20.
AMP share price snapshot
Over the past 12 months, AMP shares have fallen around 35% in value, with all of these losses coming in 2021. When looking over a 5-year time frame, AMP shares are down more than 80%.
AMP has a price-to-earnings (P/E) ratio of 17.50 and commands a market capitalisation of roughly $2.97 billion.
The post Has the AMP (ASX:AMP) dividend gone the way of the dodo? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.
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