Motley Fool Australia

Why the AMP share price just hit another new low

The AMP Limited (ASX: AMP) share price hit a multi-year low of $2.11 today as shareholders continue to wear the fallout of the Royal Commission for the business.

Shockingly this former blue-chip has now lost around 55% of its value over the past year and is down nearly 75% over the past 10 years.

This suggests AMP’s problems extend far beyond its regulatory failings and the Royal Commission findings, as it now seeks to restructure its business in an attempt to half its precipitous decline.

Under its new chairman AMP has agreed to sell its struggling life insurance business to UK-based Resolute Life, which will leave it to focus on AMP Capital its investment management business, and AMP Bank, alongside its remaining financial advice businesses in Australia and New Zealand.

In 2018 AMP made an underlying profit of $680 million and paid just 14 cents per share in dividends. Given the share price performance it seems investors are not expecting much better in 2019.

This Tiny ASX Stock Could Be the Next Afterpay

One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting...

Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX.

Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!

Returns as of 6th October 2020

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles…

Latest posts by Motley Fool Staff (see all)