Ameriprise Financial AMP is on track to reward its shareholders through impressive capital-deployment plans. Recently, the company announced an additional share-repurchase program of up to $2.5 billion.
Ameriprise Financial intends to execute the repurchase plan through Mar 31, 2021, which shall be funded through future earnings, existing working capital and other customary financing methods. Repurchases under this plan shall be made either in open market through block trades, privately-negotiated transactions or other means.
The plan comes in addition to the $2.5 billion of authorized buyback capacity, previously announced by the company. As of Dec 31, 2018, it had nearly $0.5 billion worth of share-repurchase authorization. The remaining capacity under this plan will be available through Jun 30, 2019.
In Apr 2018 , Ameriprise Financial hiked its dividend for the 11th time since 2010. The dividend was increased to 90 cents per share from the 83 cents per share, marking an 8.4% hike. This highlights the company’s commitment to return value to shareholders.
Ameriprise Financial remains well poised to boost shareholders’ wealth on the back of higher current cash-flow growth rate compared to its peers. As of Dec 31, 2018, the company had $2.9 million in cash and cash equivalents. Its capital-deployment activity looks sustainable, aided by the robust earnings strength.
Currently, the stock carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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