The AMP Ltd (ASX: AMP) share price is down 0.8% at the time of writing, having opened down 2.5%.
The diversified ASX financial share closed yesterday trading for $1.035. Shares are currently changing hands for $1.027 after dipping to $1.01 in earlier trade, down 2.5 cents.
So, why is the AMP share price in the red today?
AMP dividend returns from hiatus
In announcing its full-year financial results on 16 February, the AMP board declared a dividend payout for the first time since 2020.
Despite statutory net profit after tax (NPAT) coming in at $387 million – after posting a $252 million loss the prior year – the AMP share price closed the day down 13% on the results.
That fall was likely spurred by a 13% decline in the company's assets under management over the year (AUM), which dropped to $124.2 billion.
But income investors were rewarded with a dividend of 2.5 cents per share, 20% franked.
Which brings us back to why the AMP share price is sinking.
The stock trades ex-dividend today. Meaning investors buying shares this morning will no longer be entitled to the 2.5 cents per share payout.
It's common for stocks to fall by a fairly similar amount to their dividend on the day they trade without that payment.
Investors who did hold shares at yesterday's close can expect payment on 3 April.
AMP also offers a dividend reinvestment (DRP) plan for interested investors. That's open to any shareholders who are residents of Australia or New Zealand and have a registered address there.
The AMP dividend will be paid in Aussie dollars regardless of where you live.
AMP share price snapshot
As you can see in the chart below, the AMP share price is down 20% in 2023 but remains up 6% over the past 12 months.
