Diversified wealth manager AMP (ASX: AMP), which snuck in just before the close of the financial year with a revision to its expected earnings, is beginning to see its share price climb a little higher.
In the immediate days after the announcement the stock fell from $5 pre-announcement to a low of $4.19, a fall of 16.2%. It looks like the share price has settled down now. In what was a down day for the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) yesterday — the index lost 0.7% on Monday — AMP bucked the trend, rising around 1.2% to $4.33.
Certainly the downgrade by AMP is nothing compared with the string of mining service companies that have downgraded. Drillers Boart Longyear (ASX: BLY) and Ausdrill (ASX: ASL) continue to see heavy selling of their stocks, with their share prices yet to recover any lost ground.
Foolish takeaway
Cyclically exposed resource stocks suffer from a lack of earnings visibility and hence a lack of future dividend visibility too. In contrast, with blue chip stocks like AMP, although the market has re-rated the stock, there is still confidence in the outlook for the business and its ability to maintain dividend payments.
In the market for high-yielding ASX shares? Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!
More reading
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.