Geez, this chart looks ugly, doesn't it?
This is the AMP Ltd (ASX: AMP) share price over the past 10 years.
To say it's been a long road for AMP investors is an understatement. But as you can see from the chart lines, there has been a stabilisation of the share price for a few years now.
For the record, the AMP share price closed yesterday's session at $1.12, up 1.36% for the day.
But down 77% since March 2014.
However, we have some good news for AMP share investors.
We've got dividend forecasts to share with you, and analysts are optimistic.
So, let's check out what the analysts reckon AMP shares will pay in 2024, 2025, and 2026.
Image source: Getty Images
A short history of AMP dividends
To recap, AMP has only just resumed paying dividends in the past 12 months.
The company stopped paying dividends in 2019. It paid one final dividend of 4 cents per share that year, with 90% franking, and then nothing until April 2023. It resumed payments then with a final dividend of 2.5 cents per share with just 20% franking.
In September 2023, AMP paid 2.5 cents again for the interim dividend, also with 20% franking.
So, all up in 2023, 5 cents per share.
Then last month, the company announced a final dividend of 2 cents per share amid an earnings boost in FY23.
The wealth manager reported an underlying NPAT of $196 million, up 6.5% on FY22.
Forecast dividend in 2024
Looking ahead, the consensus forecast among analysts on CommSec is for AMP to pay a total annual dividend of 4.7 cents.
So, with 2 cents already declared last month, they're betting on a 2.7-cent interim dividend later in the year.
Based on yesterday's closing AMP share price of $1.12, a 4.7-cent total annual dividend equates to a yield of 4.2%.
That's just above the average dividend yield for S&P/ASX 200 Index (ASX: XJO) stocks of 4%.
What about future AMP dividends?
In 2025, the consensus forecast is for the ASX financial share to pay a total annual dividend of 5.9 cents.
That moves the dividend yield up to 5.27%.
In 2026, the experts expect a total annual dividend of 6.2 cents, so now we're talking a yield of 5.5%.
While that sounds strong, this yield is based on today's share price.
If you bought AMP shares 10 years ago when they were trading above $6, a 5.9-cent dividend is barely a 1% yield.
But at least AMP dividends appear to be on an upward trajectory.
