Dividend report card: Insurance Australia Group Ltd and AMP Limited | Motley Fool Australia: "n the case of AMP Limited (ASX: AMP), it is expected to increase dividends per share at an annualised rate of 51.3% during the next two years and this puts it on a forward yield of 5.5%. Despite such a strong rise in shareholder payouts, though, AMP is still expected to have considerable headroom when making its dividend payments. This is evidenced by its dividend coverage ratio being set to remain relatively high at 1.3 in financial year 2016.
A key reason for this is an increase in AMP’s assets under management which, as stated in its recent third quarter update, were 6% higher than in the same period of 2014. Looking ahead, AMP has considerable scope to increase earnings as it seeks to grow its offering in Asia, where the take-up of financial products remains relatively low. And, with efficiency programmes also expected to benefit margins, AMP’s price to earnings growth (PEG) ratio of 0.8 has huge appeal; being lower than the ASX’s PEG ratio of 1.3."
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