Ameriprise Financial experienced a decline of 12% over the past week, a move that coincided with a significant downturn in the broader market. The Dow Jones Industrial Average dropped over 2,200 points while the S&P 500 and Nasdaq saw declines of 6% and more, entering bear market territory. This widespread market sell-off was driven by heightened global trade tensions, particularly between the U.S. and China, leading to investor concerns about slower economic growth and rising inflation. As a financial services provider, Ameriprise’s stock performance likely correlated with the general market nervousness and volatility seen during the week.
Over the last 5 years, Ameriprise Financial has delivered a total shareholder return of 282.66%, highlighting significant long-term growth despite recent market volatility. This robust performance can be attributed to several key events and strategic decisions. The company recorded substantial client inflows of $11.3 billion, with wrap assets expanding to US$574 billion. This indicates strong client engagement and asset management growth. Additionally, Ameriprise’s investments in asset management capabilities, including active ETFs and expanded services, have reinforced its competitive position.
Dividend strategies have also played a crucial role, with a notable increase of 10% in quarterly cash dividends in April 2024 to US$1.48 per share. Furthermore, Ameriprise outperformed the Capital Markets industry in terms of earnings growth in the past year. However, over the past year, the company’s return has not kept pace with either the US market or the industry, which saw returns of 3.3% and 11.7%, respectively.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
