Monday, April 30, 2012

Markets Are Missing Remarkable Yields At Ameriprise Financial

Ameriprise Financial (AMP) has one of the juiciest yields in the markets these days, but most investors don't even know it. How could a company with a nearly $12B market cap have a large yield without the market realizing it?

Maybe it goes back to Ameriprise Financial splitting from American Express (AXP) several years ago. Combine the split with the financial crisis and maybe most investors don't know or trust what appears to be a new name in the financial world. After all, American Express has much lower yields and forecasted growth rates, so investors appear to trust the old parent more.

The other culprit is that investors remain completely focused on the dividend yield while ignoring the buyback yield or even more importantly, the earnings yield.

Read the full article at Seeking Alpha.


Disclosure: No position, but might initiate a position in AMP this week. Please read the disclaimer page for more details. 



No comments: