Sunk $3,000 into AMP shares 5 years ago? Here's how much passive income you've realised

The last half-decade has been a challenge for the historic financial institution.

| More on:
a man in a snappy business suit looks disappointed as he counts bank notes in his hand.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Key points

  • The AMP share price has tumbled 79% over the last five years to trade at $1.06 at the time of writing
  • Meanwhile, the company paused its dividends from 2019 amid the fallout of the Banking Royal Commission, reinstating them last month
  • AMP shareholders have received just 24 cents per share of dividends since this point of 2018

The last five years have been rough for AMP Ltd (ASX: AMP) investors, with the company's share price tumbling 79% in that time.

Stock in the 174-year-old financial institution was trading at $4.99 at this point of 2018.

That was shortly before the company's dirty laundry – of which there was plenty – was aired by the Banking Royal Commission.

Today, The AMP share price sits at just $1.06 apiece.

That means a $3,000 investment in AMP shares back then probably would have bought 601 securities. Today, that parcel would be worth just $637.

Created with Highcharts 11.4.3Amp PriceZoom1M3M6MYTD1Y5Y10YALL29 Mar 201829 Mar 2023Zoom ▾Jul '18Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '232019201920202020202120212022202220232023www.fool.com.au

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen around 21% over the same period.

But could AMP's dividends have made up for its share price's poor performance? Let's take a look.

All dividends paid to AMP shareholders over the last 5 years

Here are all the offerings placed on the table for those invested in AMP shares over the last five years:

AMP dividends' pay dateTypeDividend amount
October 2020Special10 cents
March 2019Final4 cents
September 2018Interim10 cents
Total:24 cents

That's right, each AMP share provided just 24 cents to investors who bought on 29 March 2018. In fact, the ASX 200 company put a hold on its dividends in mid-2019 as it struggled to right its rocky ship.

That means our figurative parcel would have yielded around $144.24 of passive income over its life – certainly not enough to substantially soften shareholders' losses.

Though, investors currently have the company's upcoming 2.5 cent dividend to look forward to. Shareholders have the offering in the bag after the stock traded ex-dividend earlier this month, with the payment to hit accounts next week.

And that might be just the beginning.

AMP shares could be on track to offer a 3.96% dividend yield at its current price. That is if suggestions it could pay 4.2 cents per share of dividends this financial year prove fruitful.

Motley Fool contributor Brooke Cooper 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.

More on Dividend Investing

A man reacts with surprise when her see a bargain price on his phone.
Dividend Investing

1 ASX dividend stock down 42% I'd buy right now

This business could be a great undervalued stock to buy.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Dividend Investing

Forget term deposits and buy these ASX dividend shares

Analysts think income investors should be buying these shares.

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

Why this little-known ASX dividend share is a top pick for this fund manager

There are multiple reasons why this fund manager is bullish on this stock.

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Dividend Investing

3 blue chip ASX 200 dividend stocks to buy now

Analysts think these blue chips would be top picks for income investors.

Read more »

Two laughing young women hold shopping bags and ride an escalator up to another level in a Scentre Group shopping centre.
Dividend Investing

Why I think these 2 ASX dividend stocks are ideal for income investors

These two businesses offer a lot of potential for income.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank.
Dividend Investing

Forget CBA and buy these ASX dividend shares

Analysts think these shares could be better picks than the banking giant.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

3 ASX dividend shares to buy for a passive income portfolio

Analysts think these shares could be top picks for income investors.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Dividend Investing

Brokers name the ASX dividend shares to buy now

Let's see what they are saying about these income options.

Read more »