Over the years, AMP Ltd (ASX: AMP) shares have been popular with income investors.
The financial services company would regularly share a good portion of its profits with shareholders each year.
However, a significant downturn in its performance in recent years, brought about partly by the Royal Commission, has seen its dividends dry up.
The good news, though, is that dividends are back on the menu at AMP and FY 2023 looks like it could be a decent year for passive income seekers.
But what would happen if you invested $10,000 into AMP shares now?
How much passive income will AMP shares provide?
Firstly, if you were to invest $10,000 into AMP shares, you would end up with 8,850 units at current prices.
According to a note out of Citi, its analysts are expecting AMP to pay a 3 cents per share dividend in FY 2023.
This means that those investing $10,000 into the financial services company would receive a passive income of almost $266 this year. While that's admittedly not much to get excited by, it could be worth holding on for more.
For example, Citi expects AMP's dividend to double to 6 cents per share in FY 2024. This will mean a 5.3% dividend yield at current prices, which will translate into $530 of income.
And if you keep holding into FY 2025, then Citi believes you'll be rewarded further. Its analysts are forecasting an 8 cents per share dividend. This represents a 7.1% dividend yield, which will mean a passive income of approximately $710.
All in all, a $10,000 investment at current prices could result in an income of ~$1,500 over the next three years if Citi's forecasts are on the money.
