Ameriprise Financial (NYSE:AMP) Shareholders Have Earned a 26% CAGR Over the Last Five Years

Ameriprise Financial (NYSE:AMP) Shareholders Have Earned a 26% CAGR Over the Last Five Years

Simply Wall St ·  06/11 20:18

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. Long term Ameriprise Financial, Inc. (NYSE:AMP) shareholders would be well aware of this, since the stock is up 186% in five years.


Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.


There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

市場有時無疑是高效的,但價格並不總是反映基礎業務表現。 一種檢查市場情緒如何隨時間改變的方法是查看公司的股價與每股收益(EPS)之間的互動。

During the last half decade, Ameriprise Financial became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.


You can see below how EPS has changed over time (discover the exact values by clicking on the image).


NYSE:AMP Earnings Per Share Growth June 11th 2024
NYSE:AMP每股收益增長 2024年6月11日

We know that Ameriprise Financial has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.


What About Dividends?


As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Ameriprise Financial, it has a TSR of 215% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.


A Different Perspective


It's nice to see that Ameriprise Financial shareholders have received a total shareholder return of 37% over the last year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 26%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.


But note: Ameriprise Financial may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).


Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.


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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。