AMP Limited Declares AUD 1.91 Quarterly Dividend on Capital Notes 2

AMP Limited’s Latest Dividend Announcement

AMP Limited has confirmed a quarterly dividend payment of AUD 1.9069 per security for holders of its AMP Capital Notes 2 (ASX code, AMPPB). This distribution covers the period ending 15 September 2025, with the payment scheduled for 16 September 2025. The dividend is partially franked at 20%, indicating that a portion of the payment carries a tax credit for investors.

Understanding the Distribution Rate

The total annualised distribution rate for these capital notes stands at 7.5653%, a figure derived from the 3-month bank bill swap rate plus a margin of 4.5%, adjusted for franking credits. This rate reflects the cost of capital for AMP and provides investors with a relatively attractive fixed income stream in the current market environment.

No Approvals Required and Discretionary Nature

Importantly, AMP has indicated that no external approvals, such as security holder or regulatory consents, are required before the dividend payment. However, the distribution remains at AMP’s absolute discretion and is subject to standard conditions, including the absence of any payment restrictions on the distribution date. This discretionary aspect means investors should remain attentive to AMP’s financial health and any potential changes in distribution policy.

Implications for Investors

For investors in AMP Capital Notes 2, this announcement confirms a steady income stream with a clear timeline for payment. The partial franking component offers some tax efficiency, although the majority of the dividend is unfranked. Given the fixed margin and the linkage to the bank bill swap rate, the distribution rate may fluctuate with market interest rates, which investors should consider in their portfolio planning.

Looking Ahead

While this dividend announcement aligns with expectations, the discretionary nature of distributions and the broader economic environment warrant ongoing monitoring. Investors will be keen to see whether AMP maintains this distribution level in future quarters and how market conditions might influence the capital notes’ yield and pricing.