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:

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

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.

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.

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

Image source: Getty Images

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 happy couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

Want income for life? Here's how I'd build an ASX dividend portfolio

Don't chase the highest yields, but build multiple income streams that endure.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
Dividend Investing

16 ASX 200 shares with ex-dividend dates next week

Telstra, Santos, JB Hi-Fi, and IAG are among the ASX shares about to go ex-dividend.

Read more »

A smiling man take a big bite out of a burrito
Dividend Investing

Everything you need to know about the Guzman Y Gomez dividend

Owning GYG shares could be a rewarding choice for dividends.

Read more »

A man leans back with his hands behind his head and feet on his desk with a big smile on his face at his success.
Dividend Investing

Could this ASX portfolio make work optional at 55?

A portfolio that makes full-time work optional gives investors a valuable choice.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Why I'd buy Medibank shares for the dividend yield

Medibank is providing investors with very healthy dividends.

Read more »

School boy wearing glasses standing in front of chalk board with maths and share price calculations on it.
Dividend Investing

How ASX dividend growth shares can build lasting income

A major tax change is putting a decades-old income strategy back under the spotlight.

Read more »

A man wearing a colourful shirt holds an old fashioned phone to his ear with a look of curiosity on his face as though he is pondering the answer to a question.
Communication Shares

Buying Telstra shares? Here's the yield you'll get today

Telstra's dividend yield just went up.

Read more »

Miner looking at a tablet.
Resources Shares

Everything you need to know about the new Fortescue dividend

Fortescue's latest payout is worth checking out.

Read more »