Ameriprise Financial, Inc. (NYSE:AMP) Declares Quarterly Dividend of $1.70

Key Points

• Ameriprise declared a quarterly dividend of $1.70, a 6.2% increase from the prior $1.60; shareholders of record on May 4 will be paid on May 22, implying an annual yield of about 1.5%.
• The dividend is conservatively covered — a current payout ratio of 16.2% with 21 consecutive years of increases and analysts projecting EPS that would lower the future payout ratio to about 14.2%.
• In the same quarter Ameriprise reported an EPS beat ($11.26 vs. $10.21 expected) and 9.7% revenue growth year-over-year, while analyst consensus rates the stock as a "Hold" with a $544.22 target.

Ameriprise Financial, Inc. (NYSE:AMP - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Shareholders of record on Monday, May 4th will be paid a dividend of 1.70 per share by the financial services provider on Friday, May 22nd. This represents a c) dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Monday, May 4th. This is a 6.2% increase from Ameriprise Financial's previous quarterly dividend of $1.60.

Ameriprise Financial has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 21 years. Ameriprise Financial has a dividend payout ratio of 16.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Ameriprise Financial to earn $45.06 per share next year, which means the company should continue to be able to cover its $6.40 annual dividend with an expected future payout ratio of 14.2%.

Ameriprise Financial Price Performance

Ameriprise Financial stock opened at $459.69 on Friday. The stock has a market capitalization of $41.91 billion, a price-to-earnings ratio of 12.64, a PEG ratio of 1.15 and a beta of 1.27. Ameriprise Financial has a 52-week low of $422.37 and a 52-week high of $550.18. The stock's 50 day moving average price is $454.74 and its two-hundred day moving average price is $474.78. The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.68 and a current ratio of 0.68.

Ameriprise Financial (NYSE:AMP - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The financial services provider reported $11.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $10.21 by $1.05. The firm had revenue of $4.77 billion for the quarter, compared to analysts' expectations of $4.82 billion. Ameriprise Financial had a return on equity of 63.04% and a net margin of 19.28%.The company's revenue for the quarter was up 9.7% compared to the same quarter last year. During the same period in the prior year, the business earned $9.50 EPS. On average, equities analysts predict that Ameriprise Financial will post 41.06 earnings per share for the current year.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on AMP shares. Piper Sandler dropped their target price on Ameriprise Financial from $530.00 to $460.00 and set a "hold" rating on the stock in a report on Tuesday, April 7th. Weiss Ratings restated a "buy (b-)" rating on shares of Ameriprise Financial in a report on Monday, December 29th. Jefferies Financial Group lifted their price target on Ameriprise Financial from $600.00 to $620.00 and gave the stock a "buy" rating in a report on Monday, February 2nd. Morgan Stanley dropped their price target on Ameriprise Financial from $485.00 to $452.00 and set an "underweight" rating on the stock in a report on Friday, April 10th. Finally, BMO Capital Markets reiterated a "market perform" rating on shares of Ameriprise Financial in a report on Tuesday, March 3rd. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $544.22.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The firm provides a range of advice-based wealth management, asset management and insurance products to individual and institutional clients. Its business model centers on delivering financial planning and investment advice through a network of financial advisors alongside proprietary product offerings designed to meet retirement, protection and accumulation needs.

Core products and services include comprehensive financial planning and advisory services, managed investment portfolios, retirement planning solutions, annuities and life insurance products.

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