You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
I have held AMP as a core investment for some years currently wearing a 42% loss. Each year analysts forecast share value improvement but it simply never materialises. Dividend on my purchase cost is barely adequate. My opinion is that the company is moribund and too steeped in the past and hampered by a sales force in many cases lacking the necessary skills to maintain the respect and confidence (even allowing for the downturn of sales of the once lucrative whole of life insurance) of the market. Am I best advised to gulp and bite the bullet and sell and replace with a company with better prospects?
Many thanks,
Jock
A: Thanks for the question.
I am with you – I feel AMP is moribund and sold my shares a couple of year’s back. Since I sold out, not much seems to have changed – apart from the share price having gone down.
I don’t see that AMP has any particular competitive advantage in wealth management, don’t buy the story around the acquisition of the MLC business, and the latest episode around the problems with the income protection business looks a little like an “industry own goal”.
On the positive side, the dividend yield (on the current market value) at around 5.5% (fully franked) is okay – however no standout within the financials sector.
There is probably no hurry – however into a rally, I would be a seller of AMP. If you want to maintain your exposure to the financials sector, sell AMP and replace with one of the major banks – probably the CBA.
