AMP (NZX:AMP): Is it a dividend-paying stock?

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AMP (NZX:AMP): Is it a dividend-paying stock?

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 AMP (NZX:AMP): Is it a dividend-paying stock?
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  • AMP witnessed an improved performance in 1H21.
  • AMP plans to complete the demerger of AMP Capital's private Markets business by Q1 of 2022.
  • The Group did not announce an interim dividend for 2021 and plans to review this after the demerger is completed in 1H22.

AMP Limited (NZX:AMPASX:AMP) is a leading wealth management firm, which has operations in Australia and New Zealand. The Group’s business is divided into 3 areas- AMP Australia, AMP Capital and NZ wealth management.

AMP experienced a stronger H1 of FY21 with improvement in economic and market conditions, and transformation plan delivery propelling a 57% increase in underlying earnings. The Group reported a higher NPAT of AU$181 million during the period showing strong costs, higher investment income and increased earnings in AMP Bank.

AMP’s year of incorporation, market cap, return

Image source: © 2021 Kalkine Media New Zealand Ltd, Data source- Refinitiv

AMP’s investment income stood at AU$57 million, majorly from Group Office, up AU$48 million on 1H20.

DO READ: AMP (NZX:AMP): How is the Company progressing with its demerger plans?

AMP also declared its decision to undertake the demerger of the AMP Capital private markets business and step forward on the transfer of Multi-Asset Group (MAG) to AMP Australia on 23 April.

AMP also announced the sale of AMP Capital’s GEFI business to Macquarie Asset Management for the consideration of up to AU$185 million on 8 July, expected to be completed by Q1 of 2022.

Capital management and dividend

AMP is well capitalised with AU$452-million eligible capital above target requirements as of 30 June 2021.

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On 13 August 2020, AMP announced the return of capital of up to AU$544 million to shareholders, which included a AU$344-million fully franked special dividend paid in October 2020 and up to AU$200 million in the form of an on-market share buyback. The share buyback was completed on 30 June 2021.

AMP Board did not declare any interim dividend and kept a conservative approach to capital management. The Group plans to review its dividend payments and capital management approach after the completion of the demerger in 1H22.

RELATED READ: Why consider these 5 NZX dividend stocks in Q4?

On 22 September, AMP Limited declared a quarterly dividend of AU$1.2755 per share on AMPPA security, due to be paid on 21 December 2021. On 16 September, AMP also declared a quarterly dividend of AU$1.1251 per share on AMPPB security, due to be paid on 16 December 2021.

On 29 September, at the time of writing, AMP was trading at NZ$1.04, down 2.8%.

Bottom Line

AMP remains on track to deliver on strategic priorities of reshaping and simplifying the business. The Group will prioritise completing its demerger in Q1 of 2022.


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