The first AMP dividend in over 2 years is being paid today. Here's the lowdown

Here's how much AMP's first dividend in some years is worth.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published April 3, 2023 12:03 pm AEST

We seem to be enjoying yet another positive day on the ASX share market this Monday. After last week's five-for-five gains, the S&P/ASX 200 Index (ASX: XJO) is pushing higher again today, currently up by a healthy 0.83% at back over 7,230 points. It's also a good day for AMP Ltd (ASX: AMP) shareholders too, thanks to some dividend news.

AMP shares are on fire today. The ASX 200 financial services veteran closed at $1.05 a share last week. But today, the AMP share price has boomed by an impressive 4.3% up to $1.10 a share.

This gain might just be some rubber banding going on. On Friday last week, a day when the ASX 200 jumped convincingly, the AMP share price cratered by a nasty 2.78%. This was probably thanks to the news that AMP shareholders rejected the company's remuneration report at the annual general meeting.

Today, all seems forgotten:

But this 4.3% rise comes on top of some good news regarding AMP's latest dividend. To sum it up, today is AMP's dividend payday.

A young woman sits on her lounge looking pleasantly surprised at what she's seeing on her laptop screen as she reads about the South32 share price — Image source Getty Images

AMP shareholders are about to get a dividend payday

Yes, it's been quite a while since investors were treated to a dividend from AMP shares. In fact, the company's last dividend payment came over two years ago, back in 2020.

But when AMP announced its latest full-year earnings to the markets back in February, it included a final dividend of 2.5 cents per share, partially franked at 20%. That was despite the company reporting a 34% drop in underlying net profits after tax (NPAT) to $184 million.

So this new dividend is arriving in eligible shareholders' bank accounts today. That's after the company traded ex-dividend back on 1 March. Any investors who bought AMP shares on or after that date will miss out on this latest dividend.

But for anyone who owned the shares before that date, today is your day. AMP also has a dividend reinvestment plan (DRP) in place for this dividend, so for shareholders who opted for the DRP, today is the day you will be issued your additional shares.

AMP has turned its focus to rewarding long-suffering shareholders this year. In addition to its first dividend in over two years, AMP is also in the midst of conducting a $350 million share buyback program as well.

Today's 2.5 cents per share dividend now gives the AMP share price a dividend yield of 2.27%.

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