Category: Stock Market

S&P/ASX 200 Index (ASX: XJO) coal shares have struggled in 2024 amid slumping coal prices.

Year to date the New Hope Corp Ltd (ASX: NHC) share price is down 16%.

And shares in rival coal stock Whitehaven Coal Ltd (ASX: WHC) have slumped 15% this year.

Last April coal was trading for almost US$200 per tonne. That slipped to lows of US$116 per tonne in late February this year. Coal prices have since moved higher to around US$130 per tonne this week.

For its half year results, New Hope reported a 58% decline in its average realised coal price to AU$197 per tonne. That saw revenue for the six months fall by 45.9% year on year to $856.6 million.

It was a similar story with Whitehaven.

The ASX 200 coal share achieved a greatly reduced realised average price of AU$220 per tonne over the six months. The miner’s half-year revenue plunged 58% year on year to $1.59 billion.

So, could China’s shifting market dynamics help reverse the slide?

Chinese tailwinds for ASX 200 coal shares?

It’s been a bit over a year since China lifted its import restrictions on Aussie coal, offering a boost to ASX 200 coal shares.

Coal imports were targeted in 2021 alongside other Aussie commodities after Australia’s government called for an international inquiry into the Covid origin.

While below pre-pandemic levels, China’s coal imports from Australia reached 52.5 million tonnes in 2023. December’s 6.7 million tonnes of Aussie coal imports were up 6.4% month on month, according to Reuters.

China makes up more than half of the global coal consumption. And despite a huge domestic mining industry, Chinese coal imports hit a record high of 474.4 million tonnes in 2023.

Which brings us to the latest Chinese production data, which could help rekindle ASX 200 coal shares.

According to China’s National Bureau of Statistics, domestic coal production fell 4.2% in January and February compared to the same period in 2023. The first such pullback since September 2021.

But, as Bloomberg reports, China remains heavily reliant on coal-fired energy, with coal power generation increasing by 9.7% year on year over the first two months of 2024.

And while Chinese coal demand isn’t forecast for significant growth, it’s also not expected to abate any time soon.

According to Zhang Hong, deputy secretary-general of the China National Coal Association:

Coal demand is reaching a plateau period, but its fundamental role in supporting China’s energy supply safety is hard to change in the short-term. The role of coal as primary energy and a fallback for ensuring energy security remains unchanged, even when it is close to reaching a plateau.

With China’s coal appetite forecast to remain voracious amid signs of crimping domestic production, ASX 200 coal shares like New Hope and Whitehaven could stand to benefit.

The post Could this development out of China reignite ASX 200 coal shares? appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Brickworks, IGO, and New Hope shares are dropping today
• How some savvy income investors are earning a MASSIVE 41% yield on this ASX 200 dividend stock
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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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Core Lithium Ltd (ASX: CXO) shares are catching the eye on Friday.

In morning trade, the struggling lithium miner’s shares are up a sizeable 9% to 18 cents.

Why are Core Lithium shares jumping?

Investors have been buying the company’s shares today in response to the release of announcement relating to the exploration programs completed during the 2023 field season.

According to the release, final assays have been received from the drilling and geochemical programs with encouraging results. Management believes these demonstrate the prospectivity of the entire Finniss project area.

It highlights that wide zones of spodumene mineralisation were intersected in drilling at the high priority Ah Hoy and Seadog prospects. These results suggest the potential for these two adjacent prospects to form part of a larger cluster of mineralised pegmatites.

As things stand, Core Lithium is still interpreting the results and updated resource models are expected to be announced next month.

What’s next?

The exploration continues at Finniss in 2024. Its focus will be on testing large scale pegmatite targets which can potentially sustain lower cost production. This could be very important in the current environment of low lithium prices.

Outside Finniss, exploration will also focus on unlocking value in Core Lithium’s regional lithium, uranium, and gold targets in the Northern Territory and South Australia. Details on the company’s new exploration strategy and budget will be provided during the next quarter.

‘Exceptional results’

Core Lithium’s interim CEO, Doug Warden, was very pleased with the drilling results. He said:

The exceptional results from Ah Hoy and Seadog have successfully increased our confidence in the existence of a cluster of mineralised pegmatites. The close proximity of these prospects and others yet to be tested, could benefit any future development study outcomes. We are excited about the implications of these new results, together with earlier results, for our resource update to be released next month.

Warden was also feeling pleased about the potential for the company to lower its production costs and unlock value in other projects. He adds:

It is pleasing to see that our exploration strategy of finding larger pegmatite targets to drive future low cost production at Finniss is gaining momentum. I am very excited by the exploration potential that exists, not only within our main project at Finniss, but also at our other projects within the Northern Territory, where we will be looking to unlock the value in future exploration programs.

The post Core Lithium shares jump 9% on ‘exceptional’ exploration results appeared first on The Motley Fool Australia.

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More reading

• Are Core Lithium shares a bargain buy or overvalued?
• Why Core Lithium, Deep Yellow, Iperionx, and Tuas shares are racing higher today
• Why Arafura Rare Earths, Core Lithium, Goodman, and Superloop shares are falling today
• These are the 10 most shorted ASX shares
• Why are ASX lithium shares being annihilated on Friday?

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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Clarity Pharmaceuticals Ltd (ASX: CU6) shares have been on fire over the last 12 months.

During this time the ASX biotech stock has rocketed a massive 280%.

To put that into context, a $20,000 investment in the radiopharmaceuticals company a year ago would now be worth $56,000 today.

But the good news is that one leading broker believes these gains could continue.

What is the broker saying about this ASX biotech stock?

Bell Potter highlights that global healthcare giant Astra Zeneca has just acquired one of Clarity’s radiopharmaceuticals rivals.

It sees a lot of positives in the deal and notes the significant premium that Astra Zeneca paid. The broker said:

Astra Zeneca (AZ) will acquire the NASDAQ listed Fusion Pharmaceuticals for up to US$2.4bn. The largely cash deal represents a 126% premium for Fusion shareholders and yet another validation of radiopharmaceuticals as an emerging cornerstone in oncology. AZ has a well established oncology franchise and the acquisition is a logical extension to its portfolio. The transactions also has clear implications for the implied valuation of CU6.

Given the similarities of the two companies, Bell Potter appears to believe that this ASX biotech stock could be of interest to other giants wanting exposure to radiopharmaceuticals. It said:

Fusion appears to be at a similar development stage to Clarity in mCRPC i.e. dose determination and in planning for a pivotal study. Both companies have produced encouraging case study data arising from patients involved in earlier clinical trials. We concluded that the level of interest among pharma groups looking for radiopharmaceutical assets remains at fever pitch. This acquisition by AZ is the third transaction in recent months involving a top tier pharma in the category. High quality, later stage assets are likely to continue to attract premium prices.

More returns to come

In response to the news, Bell Potter has reiterated its speculative buy rating and $3.90 price target on the ASX biotech stock.

This implies potential upside of 32% for investors over the next 12 months.

So, while it may have almost quadrupled in value since this time last year, clearly Bell Potter doesn’t believe it is too late to invest (if you have a high risk tolerance).

The post Why this exciting ASX biotech stock could be a future star appeared first on The Motley Fool Australia.

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More reading

• 1 ASX stock to consider buying that could be the next ResMed
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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 recommended AstraZeneca Plc. 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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National Australia Bank Ltd (ASX: NAB) shares have performed well for shareholders in 2024 to date. The NAB share price has climbed around 13% in the year so far. That compares to a rise of just 2% for the S&P/ASX 200 Index (ASX: XJO).

In this article, we’re going to look at how a $5,000 investment in NAB shares would have grown.

Good returns

The NAB share price finished 2023 at $30.70, so with $5,000 an investor would have been able to buy 162 shares (with a little bit of cash leftover).

As I’ve already mentioned, the NAB share price has gone up by 13%, so those 162 shares would now be worth $5,634.36 (at the time of writing).

Seeing as we’re only a few months into the year, we haven’t seen NAB pay a dividend yet.

If NAB were to pay the same dividends over the next 12 months as the last 12 months, it could pay an annual dividend per share of $1.67. At the current valuation, that translates into a cash dividend yield of 4.8% or a grossed-up dividend yield of 6.9%.

If the NAB share price were to end 2024 at $34.78, the total shareholder return (which is dividends plus capital growth) would be close to 18%. I think that would be a market-beating performance.

What’s driving the NAB share price?

To get the true answer, you’d need to go and ask each buyer of NAB shares in the last few weeks about why they were willing to pay a higher price.

Overall, the wider economic conditions are helpful for NAB. The unemployment rate remains low, inflation is reducing and interest rates are seemingly getting closer.

However, the recent FY24 first-quarter update wasn’t the most positive. It reported it generated $1.7 billion of statutory net profit after tax (NPAT) and $1.8 billion of cash earnings. The cash earnings were down 16.9% year over year.

NAB talked about a slightly underlying net interest margin (NIM) because of higher deposit costs and competitive lending pressures, mostly relating to Australian home lending.

It also reported a credit impairment charge was $193 million reflecting higher arrears in Australian home lending combined with business lending volume growth. The ratio of loans that were at least 90 days overdue was 0.75% at the end of the FY24 first quarter, up from 0.62% in the first quarter of FY23.

Time will tell whether the run-up of the NAB share price is justified or not amid the rising arrears.

The post If I’d put $5,000 in NAB shares at the start of 2024, here’s what I’d have now appeared first on The Motley Fool Australia.

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More reading

• 4 ‘overheated’ ASX 200 shares to stay away from
• An 11% dividend yield from NAB shares? Here’s how these brave income investors achieved it!
• Why I might be selling my NAB stock in March
• Why are ASX investors so obsessed with dividends?
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?

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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Aiming for a lifestyle-boosting passive income from S&P/ASX 200 Index (ASX: XJO) shares?

Here’s how I’d go about building a $13,080 annual passive income by investing $5,000 in ASX 200 dividend stocks today.

Diversification, franking credits and patience

First, I’d have to be realistic about my timeline.

We’ll look at some potential time horizons below, and how I can make the magic of compounding work in my favour.

But unless I can find an ASX 200 stock yielding north of 250% (I can’t!), I won’t garner my $13,080 in annual passive income from a $5,000 investment overnight.

Second, I’d work to build a diversified portfolio of ASX 200 dividend shares, operating in various sectors and geographic locations. That will lower the risk of my income portfolio taking a big unexpected hit if one company or sector comes under pressure.

With $5,000 to invest, I’d stick with four high-yielding stocks for now. As my portfolio grows, I’d sell some of those holdings and expand that portfolio to 10 or so ASX shares.

And the third thing I’d aim for is ASX 200 dividend shares offering full franking credits. That will let me hold onto more of my passive income when the tax man comes knocking.

Four ASX 200 dividend stocks for passive income

With that said here are four high-yielding ASX shares I’d buy with $5,000 today to build that $13,080 passive income stream:

• ASX 200 energy stock Woodside Energy Group Ltd (ASX: WDS) trades on a fully franked trailing yield of 14.1%
• ASX 200 bank stock Westpac Banking Corp (ASX: WBC) trades on a fully franked trailing yield of 5.3%
• ASX 200 mining stock Fortescue Metals Group Ltd (ASX: FMG) trades on a fully franked trailing yield of 8.3%
• ASX 200 auto retail share Eagers Automotive Ltd (ASX: APE) trades on a fully franked trailing yield of 5.2%

If I were to invest an equal amount in each stock, I could expect to earn an average yield (based on the trailing yield) of 8.2%.

I’d also be hoping these companies post share price gains over time.

I believe that could conservatively see my total returns come out to 12% a year.

(Fuelled by a strong run from Fortescue, the average share price gains for these four ASX 200 stocks over the past five years is considerably higher than 12%.)

I’d also be sure to reinvest those dividends to make the most of compounding.

To the maths

So, how long will it take before I can start withdrawing my passive income?

Well, working with the 8.2% dividend yield, I’d need to build my ASX 200 share portfolio up to $159,517 to withdraw $13,080 a year without touching my capital.

Starting with $5,000 today, and achieving a 12% annual total return, I’d reach that goal in 29 years.

As always, before you invest a single dollar in ASX shares be sure to do your own careful research. If you’re time-poor or don’t feel comfortable with that, just reach out for some expert advice.

The post I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income appeared first on The Motley Fool Australia.

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More reading

• Forget Fortescue and buy this iron ore share for a 33% return
• $2.1 million! Who are the highest paid ASX 200 directors?
• 4 ‘overheated’ ASX 200 shares to stay away from
• Here’s the Woodside dividend forecast through to 2026
• 5 things to watch on the ASX 200 on Thursday

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 recommended Eagers Automotive Ltd. 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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Endeavour Group Ltd (ASX: EDV) shares have underperformed the market over the last 12 months.

Since this time last year, the drinks giant’s shares have lost over 20% of their value.

And with the ASX 200 index rising 11% over the same period, it means that this ASX dividend stock has underperformed the market by a disappointing 31%.

The good news for income investors, though, is that this could have created a compelling opportunity to buy a market-leader at a discount.

Is this an ASX dividend stock to buy?

Goldman Sachs thinks that investors should be snapping up Endeavour shares while they’re down. Particularly given its defensive qualities, dominant market share, and attractive valuation. The broker commented:

Our Buy thesis on the stock is based on the following key drivers: 1) Market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages; 2) Organic reopening beneficiary with its hotels/pubs business back to pre-COVID sales/property. We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in. We are Buy rated on EDV.

Goldman has a buy rating and $6.20 price target on the ASX dividend stock. This implies potential upside of 17% for investors over the next 12 months.

Attractive dividend yields

One positive from the weakness in the Endeavour share price is that the potential dividend yield on offer has increased.

For example, Goldman Sachs is forecasting fully franked dividends per share of 22 cents in FY 2024 and FY 2025, and then 24 cents in FY 2026.

Based on the current Endeavour share price of $5.30, this would mean yields of 4.15%, 4.15%, and 4.5%, respectively.

This stretches the total potential return to beyond 21% for investors buying the ASX dividend stock at current levels.

The post 1 ASX dividend stock down over 20% to buy right now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend shares to buy for a passive income boost
• 3 highly-rated ASX dividend shares for income investors to buy next week
• Buy Woolworths and these ASX dividend shares
• 34 ASX 200 shares with ex-dividend dates next week
• Average wage tops $100k, worries for inflation, e-commerce flies: Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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BHP Group Ltd (ASX: BHP) shares have been under pressure in recent weeks.

Investors have been hitting the sell button in response to falling iron ore prices. This has led to the miner’s shares falling approximately 13% since the start of the year.

The question now, though, is whether this has created a buying opportunity for investors?

To find out, let’s see what a $10,000 investment in BHP’s shares could turn into in a year if you were to buy at today’s share price.

Investing $10,000 into BHP shares

Firstly, with the Big Australian’s shares currently fetching $44.15, you could pick up 227 units with an investment of $10,022.05.

What could these shares be worth in 12 months?

Well, a recent note out of Goldman Sachs reveals that its analysts have put a buy rating and $49.40 price target on the miner’s shares.

The broker highlighted four reasons why it thinks BHP shares are a buy at current levels.

We are Buy rated on: (1) Attractive valuation, but at a premium to RIO; (2) GS bullish copper and met coal; (3) Optionality with +US$20bn copper pipeline and improved production growth; (4) Robust FCF, but still below RIO. We continue to believe that BHP’s major opportunity is growing copper production in Chile at Escondida and Spence, and growing copper production and capturing synergies in South Australia between Olympic Dam and the previous OZL assets.

Big return potential

If the mining giant’s shares were to rise to Goldman’s price target, your 227 units would have a market value of $11,213.80. That’s a return of over $1,200 on your original investment.

But the returns won’t stop there. While it is too late to get hold of BHP’s recently declared interim dividend, over the next 12 months the miner will be paying out its final dividend of FY 2024 and its interim dividend of FY 2025.

Goldman is expecting dividend yields of 5% in FY 2024 and 4.4% in FY 2025. This should mean a yield of approximately 4.7% for investors between now and this time next year, which would mean dividend income of approximately $470 on your investment.

If this proves accurate, this boosts the total potential return on investment to approximately $11,680 or 16.5%.

All in all, this arguably makes BHP worth considering if you’re looking for exposure to the mining sector today.

The post How much could $10,000 invested in BHP shares be worth next year? appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20k to target $1,400 a year from ASX dividend shares
• Why are ASX 200 mining shares smashing the benchmark on Wednesday?
• Buying BHP shares? You’ll want to read this
• 3 ASX 200 mining shares to buy now with less than $1,000
• Buy Woodside shares and these ASX 200 dividend giants now

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 positions in and has recommended Goldman Sachs Group. 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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Australian income investors are a lucky bunch. The local share market has a large amount of ASX dividend shares to choose from right now.

But which ones could be buys for investors this week?

Three that analysts are feeling positive on and are forecasting 5% dividend yields are listed below. Here’s what you can expect from them:

Accent Group Ltd (ASX: AX1)

Accent could be a good option for income investors. That’s the view of analysts at Bell Potter, which have a buy rating and $2.50 price target on the footwear focused retailer’s shares.

In addition, the broker is forecasting fully franked dividends of 13 cents per share in FY 2024 and then 14.6 cents in FY 2025. Based on its share price of $1.98, this equates to a yield of 6.5% and 7.4%, respectively.

Rio Tinto Ltd (ASX: RIO)

Another ASX dividend share that could offer above-average yields is Rio Tinto. It is of course one of the globe’s largest miners and the owner of a world-class operations across a number of commodities such as copper and iron ore.

Goldman Sachs is a fan of the miner and currently has a buy rating and $138.30 price target on its shares.

As for income, the broker is expecting fully franked dividends per share of US$4.39 (A$6.68) in FY 2024 and then US$4.61 (A$7.02) in FY 2025. Based on the latest Rio Tinto share price of $121.14, this will mean yields of approximately 5.5% and 5.8%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Finally, Citi thinks that this residential and land lease developer and retail, logistics and office real estate property manager could be an ASX dividend share to buy right now.

The broker currently has a buy rating and $5.00 price target on its shares.

In respect to dividends, the broker expects a 26.2 cents per share dividend in FY 2024 and a 26.6 cents per share dividend FY 2025. Based on its current share price of $4.79, this represents 5.45% and 5.55% dividend yields.

The post Buy these top ASX dividend shares with 5%+ yields appeared first on The Motley Fool Australia.

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More reading

• $2.1 million! Who are the highest paid ASX 200 directors?
• Why are ASX 200 mining shares smashing the benchmark on Wednesday?
• Rio Tinto shares higher on $535 million lithium news
• Why these excellent ASX dividend shares have been named as buys
• 3 ASX dividend shares to buy for a passive income boost

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Accent Group. 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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There’s an ASX 200 stock that (unless you’re a shareholder) you might think has had its fair share of upside. After all, this company has given investors a 7.76% gain over 2024 to date, as well as a 17.8% increase in share price over the past 12 months.

Over five years, those gains stretch to 85.2%, which doesn’t even include the substantial boost from dividends either.

The ASX 200 stock in question is none other than retail share Premier Investments Limited (ASX: PMV). If you don’t know Premier Investments, chances are you’d be familiar with at least one of this company’s many lucrative retail brands. They include Peter Alexander, Dotti, Jacqui E, Smiggle, Just Jeans and Jay Jays.

So we’ve already established that this company has been a real winner for ASX 200 stock market investors over a long period of time. But shareholders could be treated to even higher gains in the future, if a report is to be believed.

Could this ASX 200 stock be heading for a breakup?

According to The Australian, Jarden analysts believe that a current strategic review of the Premier Investments business structure will either lead to “no change in the current structure, a demerger of the Smiggle and/or Peter Alexander, or a demerger of its core fashion brands”.

The analysts went on to argue that “the sale or equity swap for the core apparel brands (which include
Smiggle and Peter Alexander) could deliver the most potential upside, particularly if synergies existed for an appropriate buyer”.

Jarden was coy on just how much this might be worth to investors. But the report also cited analysis from Unified Capital Partners from 2023. This also found that a demerger could unlock additional value for shareholders of this ASX 200 stock.

That’s based on the assumption that Smiggle could have a value of more than $1.1 billion on its own, with Peter Alexander being worth another $1.5 billion.

If these businesses were spun out, Unified Capital Partners estimated that combined, Premier and the demerged company would have a value of around $33.46 per share. Premier was trading at $30.43 at yesterday’s close, so this would imply a further upside of around 10%.

No doubt Premier shareholders will be salivating at that thought. But we’ll have to see what this ASX 200’s management team decides to do.

The post How a potential demerger could deliver a 10% upside for this ASX 200 stock appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 large-cap shares upgraded by brokers
• ASX 200 off to the races amid 2024 Fed rate cut hopes
• 5 things to watch on the ASX 200 on Thursday

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 recommended Premier Investments. 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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Geez, this chart looks ugly, doesn’t it?

This is the AMP Ltd (ASX: AMP) share price over the past 10 years.

To say it’s been a long road for AMP investors is an understatement. But as you can see from the chart lines, there has been a stabilisation of the share price for a few years now.

For the record, the AMP share price closed yesterday’s session at $1.12, up 1.36% for the day.

But down 77% since March 2014.

However, we have some good news for AMP share investors.

We’ve got dividend forecasts to share with you, and analysts are optimistic.

So, let’s check out what the analysts reckon AMP shares will pay in 2024, 2025, and 2026.

A short history of AMP dividends

To recap, AMP has only just resumed paying dividends in the past 12 months.

The company stopped paying dividends in 2019. It paid one final dividend of 4 cents per share that year, with 90% franking, and then nothing until April 2023. It resumed payments then with a final dividend of 2.5 cents per share with just 20% franking.

In September 2023, AMP paid 2.5 cents again for the interim dividend, also with 20% franking.

So, all up in 2023, 5 cents per share.

Then last month, the company announced a final dividend of 2 cents per share amid an earnings boost in FY23.

The wealth manager reported an underlying NPAT of $196 million, up 6.5% on FY22.

Forecast dividend in 2024

Looking ahead, the consensus forecast among analysts on CommSec is for AMP to pay a total annual dividend of 4.7 cents.

So, with 2 cents already declared last month, they’re betting on a 2.7-cent interim dividend later in the year.

Based on yesterday’s closing AMP share price of $1.12, a 4.7-cent total annual dividend equates to a yield of 4.2%.

That’s just above the average dividend yield for S&P/ASX 200 Index (ASX: XJO) stocks of 4%.

What about future AMP dividends?

In 2025, the consensus forecast is for the ASX financial share to pay a total annual dividend of 5.9 cents.

That moves the dividend yield up to 5.27%.

In 2026, the experts expect a total annual dividend of 6.2 cents, so now we’re talking a yield of 5.5%.

While that sounds strong, this yield is based on today’s share price.

If you bought AMP shares 10 years ago when they were trading above $6, a 5.9-cent dividend is barely a 1% yield.

But at least AMP dividends appear to be on an upward trajectory.

The post Here’s the AMP dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• Here’s when AMP says ASX investors can expect an interest rate cut
• Are you investing or gambling?
• Here are the top 10 ASX 200 shares today
• 25 ASX 200 shares with ex-dividend dates next week

Motley Fool contributor Bronwyn Allen 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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