Ameriprise Financial (AMP) DIvidends Date & History

Key Takeaways

• Ameriprise Financial (AMP) offers a modest dividend yield of approximately 1.44%, with an annual dividend of $6.80 per share paid quarterly.
• The company has achieved 21 consecutive years of dividend increases, placing it among the most reliable dividend growers in the financial services sector.
• With a payout ratio of approximately 16% to 17%, AMP maintains one of the lowest payout ratios in the industry, providing exceptional room for future dividend growth.
• Strong free cash flow generation — approximately $8.2 billion in 2024 — comfortably covers the dividend obligation, with a free cash flow payout ratio below 9%.
• The company's aggressive share buyback program (approximately 4.8% buyback yield) combined with its dividend produces a total shareholder yield above 6%.
• AMP is best suited for total return-oriented and dividend growth investors rather than those seeking high current income.

Dividend Overview

AMP operates as a diversified financial services company with three core segments: advice and wealth management, asset management through Columbia Threadneedle, and retirement and protection solutions. With approximately $1.7 trillion in assets under management and administration (AUM) as of year-end 2025, Ameriprise is one of the largest wealth managers in the United States.

The company pays a quarterly dividend of $1.70 per share, which translates to an annualized payout of $6.80 per share and a dividend yield of roughly 1.44%. While this yield sits below the broader market average, Ameriprise is not positioned as a high-yield stock. Instead, it is widely regarded as a dividend growth stock, characterized by consistent annual increases, a low payout ratio, and a capital-light, fee-based business model that generates substantial free cash flow. The most recent ex-dividend date was May 4, 2026, with payment made on May 22, 2026.

Dividend History and Growth

Ameriprise Financial has built an impressive dividend track record, raising its payout every year for 21 consecutive years. This places the company firmly in the category of Dividend Contenders — stocks with 10 to 24 years of annual dividend increases.

The company's dividend growth has been steady and meaningful. Over the past five years, the dividend has grown at a compound annual rate of approximately 9%. Recent quarterly dividend increases include a bump from $1.48 to $1.60 per share in May 2025, and a further increase to $1.70 per share in May 2026. Looking further back, the quarterly dividend stood at just $0.58 per share in 2014, highlighting more than a decade of disciplined and sustainable payout growth. Management's commitment to returning capital to shareholders is further reinforced by the company's substantial share repurchase program, which has meaningfully reduced the share count over time.

Dividend Sustainability and Payout Ratio

One of the most compelling aspects of AMP's dividend profile is its exceptionally low payout ratio. Based on trailing twelve-month earnings, the dividend payout ratio stands at roughly 16% to 17%. This means the company retains approximately 83% of its earnings to reinvest in the business, fund share buybacks, and strengthen its balance sheet. On a free cash flow basis, the payout ratio is even lower — below 9% — underscoring the dividend's wide margin of safety.

In 2025, Ameriprise reported record assets under management of $1.7 trillion and generated full-year GAAP net income of $3.56 billion, or $36.28 per diluted share. Operating cash flow for the year exceeded $8.3 billion. These figures comfortably support the current dividend commitment. The company also maintains a strong adjusted operating return on equity (ROE) — a measure of how efficiently it generates profits from shareholder capital — of approximately 53%, reflecting the capital-light nature of its fee-based wealth and asset management operations. Even in a challenging economic environment, the dividend appears well protected.

Dividend Compared to Industry Peers

Within the financial services and wealth management sector, Ameriprise's dividend yield of roughly 1.44% is largely in line with or slightly above several key peers. For context, SCHW (Charles Schwab) offers a dividend yield in the 1.3% range, while LPLA (LPL Financial Holdings) provides a lower yield around 0.7%. Traditional investment banks such as MS (Morgan Stanley) and GS (Goldman Sachs) typically carry yields in the 2% to 3.5% range but operate with higher payout ratios and more capital-intensive business models.

What sets AMP apart is the combination of a modest yield with an exceptionally low payout ratio and a two-decade-plus growth streak. While its current income yield may appear unremarkable, the dividend growth trajectory and total shareholder return (dividends plus buybacks exceeding 6%) are among the most attractive in the industry for long-term investors.

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Is This Stock Attractive for Dividend Investors?

Ameriprise Financial is unlikely to appeal to income-oriented investors who prioritize a high current yield above all else. With a dividend yield around 1.44%, the stock does not compete with high-yielding sectors such as utilities, real estate investment trusts (REITs), or traditional high-dividend financials.

However, for dividend growth investors and total return-oriented investors, AMP presents a compelling profile. The 21-year streak of annual dividend increases, combined with a payout ratio below 17% and a 9% five-year dividend growth rate, suggests the company has both the capacity and the demonstrated commitment to continue raising its dividend at an above-average pace. The robust share buyback program further enhances total shareholder returns. Conservative, long-term investors who value dividend reliability, strong free cash flow generation, and a management team that prioritizes shareholder returns may find AMP a suitable holding. The company's fee-based revenue model and leadership position in wealth management provide additional stability across market cycles.

Disclaimer

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