A: Thanks for the question.

AMP is paying an attractive yield,  but it is also a business recovering from a pretty ordinary 2016. The challenges with their wealth protection business have probably abated, but I am not sure that they have gone away.

Looking ahead, my guess is that it is going to be popular with income seekers (and hence well supported under $5.00), but if the market rallies, probably a stock that will lag and underperform. It is not going to shoot the lights out – and it is certainly not getting back to $12.48 anytime in the immediate future.

What do the brokers say? According to FN Arena, it has 3 buys and 4 neutrals. The consensus target price is $5.54. a small premium to yesterday’s close of $5.20.

 

I think whether you hold or sell depends on:

1. Are you after income or growth? If income, then potentially hold, if growth, potentially sell;
2. Have you something better to invest in?; and
3. Can you use the capital loss to offset a capital gain.

 

Hope this helps.