Yahoo Finance Ameriprise Financial Inc's Dividend Analysis
Exploring the Sustainability and Growth of Dividends
Ameriprise Financial Inc (NYSE:AMP) recently announced a dividend of $1.48 per share, payable on May 17, 2024, with the ex-dividend date set for May 3, 2024. As investors anticipate this forthcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will evaluate the sustainability and performance of Ameriprise Financial Inc's dividends.
What Does Ameriprise Financial Inc Do?
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Ameriprise Financial is a leading entity in the US asset and wealth management sector, managing approximately $1.4 trillion in assets as of the end of 2023. The company boasts one of the largest branded advisor networks in the industry, with about 10,000 advisors. Roughly 80% of its revenue is derived from its asset and wealth management segments. Furthermore, Ameriprise has strategically minimized its involvement in insurance by divesting its auto and home insurance operations in 2019 and exiting its proprietary fixed annuities business in 2020.
A Glimpse at Ameriprise Financial Inc's Dividend History
Since 2005, Ameriprise Financial Inc has maintained a consistent dividend payment track record, distributing dividends quarterly. The company has enhanced its dividends annually since 2005, earning it a spot as a dividend achievera title awarded to firms that have raised their dividends yearly for at least the past 19 years.
Breaking Down Ameriprise Financial Inc's Dividend Yield and Growth
Currently, Ameriprise Financial Inc boasts a trailing dividend yield of 1.30% and a forward dividend yield of 1.44%, indicating anticipated dividend increases over the next year. However, with a yield near a 10-year low and underperforming 90.95% of global competitors in the Asset Management industry, the dividend yield may not be particularly attractive to income-focused investors.
Over the past three years, Ameriprise Financial Inc's annual dividend growth rate was 9.00%. This rate slightly decreased to 8.50% over a five-year span, and over the last decade, the annual dividends per share growth rate was 9.90%. The 5-year yield on cost for Ameriprise Financial Inc stock is approximately 1.95%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, standing at 0.18 as of March 31, 2024, suggests that Ameriprise Financial Inc retains a substantial portion of its earnings, which supports future growth and buffers against downturns. The company's profitability rank is 7 out of 10, indicating robust earnings potential relative to peers. This is underscored by a decade of consistent positive net income.
Growth Metrics: The Future Outlook
Ameriprise Financial Inc's growth rank of 7 out of 10 suggests a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate of 15.00% annually outperforms 60.67% of global competitors. Moreover, its 3-year EPS growth rate of 27.00% annually surpasses 70.85% of global peers, and its 5-year EBITDA growth rate of 16.40% outperforms 68.89% of competitors.
Conclusion: Assessing Dividend Sustainability and Growth
Considering Ameriprise Financial Inc's consistent dividend payments, robust growth rates, and solid payout ratio, the company appears well-positioned to maintain its dividend growth. Investors seeking opportunities in high-dividend yield stocks may find Ameriprise appealing, especially given its strategic focus and financial health. For more detailed analyses and stock screening, consider exploring GuruFocus High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
