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.

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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.

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