While 2020 continues to be a difficult year for all. For AMP Ltd [ASX:AMP] it can nearly be considered a continuation of its problems.
At time of writing the AMP share price is down over 74% from the high in March 2018 to trade at $1.37.
The price may be down, but there is still a decent dividend on the table for investors.
What’s Happening at AMP?
The COVID-19 pandemic caused all sorts of problems for companies across the board this year.
For AMP, the virus could be put as just another thing in a long list of issues for the company.
In 2018, when the royal commission took place to look into the practices of the finance industry, AMP took a complete hammering when it was revealed the company was charging customers a fee but not providing a service.
On the back of this news, the AMP stock price took a nosedive and sparked shareholder class actions.
The inquiry’s barristers recommended Australia’s largest wealth manager face criminal charges for lying to the Australian Securities and Investments Commission.
The company found itself in a legal and PR nightmare.
Moving on from this and into 2020, things didn’t get much better.
As the company announced in February, it would give its chief executive a bonus of up to $1.8 million on the same day it revealed an annual net loss of nearly $2.5 billion.
Then COVID-19 hit our shores, killing any hope of redemption this year.
Where to from here for AMP?
All is not lost though. In amongst this nightmare there is still a bright spot to be seen for the company and investors alike.
On 1 October 2020, AMP paid 10 cents a share fully franked dividend. The special dividend is the return of capital following the sale of the AMP Life business this year.
Great news after not reporting a dividend for 2019.
While the dividend would be a nice surprise, AMP’s stock price is still a mess.
The price has moved up over the last few weeks before falling away to where it sits at time of writing.
The recent move up took place on declining trading volumes, indicating that buyers may not be committed to the move up.
Should the price continue to fall then the levels of $1.30 and $1.09 may become the focus.
On the upside, the price would be looking to break through the resistance level of $1.66 to be even remotely considered bullish.
While AMP has a lot of work to do to get out of the difficult spot it’s in, paying the dividend this year might just bring a better outlook back to the company.
For The Rum Rebellion
PS: We reveal our top five ASX-listed dividend stocks with a great chance of maintaining big payouts during and after the crash. Click here to download your free report.