AMP is one of the largest and oldest life insurance and wealth manager in Australia. AMP head office is located on 33 Alfred Street overlooking Circular Quay. Once known as the a pure life insurer now it is a diversified financial service business spanning from Life Insurance, Superannuation and Investment Management.
The company also has one of the largest financial planning networks in Australia which it relies on to distribute its wealth management products.
AMP Share Price Graph
The stock price peaked in 2001 when it was demutualised and it has faced a number of hurdles. After selling its overseas business it is now purely focused on Australia. Given the scale of the business where it has reached maturity, annual growth is around single digits.
The maturity of the business and consistent dividend yield is reflected in the stock price where the company has become a classic blue chip low volatility stock. This means the share price volatility over the long run is lower than the market.
AMP Dividend History
AMP is leveraged to the financial sector which in turn is a cyclical sector. The ups and down are super leveraged to the overall economic cycle.
Dividends gradually increased until 2007 where earnings was again hit along with the rest of the sector. Since then the dividend has been slowly climbing however on a medium term horizon it can be considered to be flat.
Overall we are neutral towards AMP share value. The business is nothing to get excited about but can be attractive to investors that are exactly looking for slow and steady business. Given where the business is valued by the market at a multiple that does not suit our risk and reward appetite.
AMP Dividend Dates 2017
Interim Ex-Dividend Date: 22/2/2017
Interim Record Date: 23/2/2017
Interim Dividend Payment Date: 31/3/2017