AMP Limited Declares AUD 0.01 Dividend with Partial Franking for H2 2024

Dividend Announcement Overview

AMP Limited has confirmed a dividend payment of AUD 0.01 per ordinary fully paid share for the half-year period ending 31 December 2024. This announcement, released on 14 February 2025, sets the ex-dividend date for 28 February 2025, with the record date on 3 March 2025 and payment scheduled for 3 April 2025.

Franking Details and Tax Implications

The dividend is partially franked, with 20% of the dividend amount carrying franking credits at the corporate tax rate of 30%, while the remaining 80% is unfranked. This split reflects AMP's current tax position and may influence the after-tax returns for different classes of investors, particularly those sensitive to franking credits.

Dividend Reinvestment Plan Status

Notably, AMP’s Dividend Reinvestment Plan (DRP) will not apply to this dividend payment. This decision means shareholders will receive cash dividends rather than having the option to reinvest dividends into additional shares, which could impact investor strategies focused on compounding returns.

Context Within AMP’s Financial Strategy

This dividend announcement signals AMP’s ongoing commitment to returning value to shareholders despite a modest payout size. The partial franking suggests a balanced approach to managing tax efficiency and cash flow. Investors will be watching closely to see how this fits into AMP’s broader capital management and growth plans, especially given the evolving landscape in financial services and investment management sectors.

Market and Investor Considerations

While the dividend amount is relatively small, it provides a steady income stream and reflects AMP’s stable earnings profile. The partial franking component may also affect the attractiveness of the dividend to different investor groups, particularly those prioritizing fully franked dividends. The absence of any required approvals or conditions for this dividend underscores its straightforward nature.