Entering text into the input field will update the search result below

New Dip, Buy Ameriprise Financial

Dec. 07, 2018 9:25 AM ETAmeriprise Financial, Inc. (AMP)8 Comments
AllStarTrader profile picture


  • Ameriprise continues to perform well with strong operational results.
  • The recent pullback offers investors a chance to get a higher yield and cheaper valuation.
  • The shares have been under pressure as if the company is a financial center however, it is a quality asset manager.

Photo Source

Ameriprise Financial (NYSE:AMP) is an asset manager with more than $900 billion in AUM or assets under management. The company continues to perform exceptionally well through its network of financial advisors that operate under the Ameriprise name. Compared to peers the company trades at quite a discount. The shares now offer an attractive entry point for enterprising investors willing to wait for the fair value to be met. Additionally, shareholders will be rewarded with a healthy dividend that has been rising and is plenty secure. I have started a position with the recent pullback as I believe shares are now priced attractively considering the limited risk in its business.


Ameriprise reported results in the most recent quarter that beat on both the top and bottom lines.

Source: Seeking Alpha

The company posted strong results with revenue growing 9.3% year over year thanks in part to strong performance in the management and advise division along with growth in all the other divisions.

Below we can see that so far for the nine months ended in 2018 the company is performing great.

Source: 10Q

Revenues have grown 7.8%, while earnings have grown 26.3%. The continued execution by management should give investors confidence that the recent sell off is offering an opportunity and is due to general market weakness not company specific weakness. The balance sheet continues to remain strong as well.

The company has close to $2.4 billion in cash on hand with long term debt slightly above that at $2.87 billion. Knowing the company is not over levered and has a manageable debt load is increasingly important in a rising rate environment. It also provides confidence that the company can continue to operate in a recessionary cycle as it has more than enough cash flow to continue to fund operations without using

ChartAMP data by

ChartAMP data by YCharts

This article was written by

AllStarTrader profile picture
Started investing at 11 years old. Self taught, taking an analytical all around thought process approach to investing. Look at everything from all angles and every view and you will never miss anything. I believe in collecting dividends from most of my investments, just as an investment in a private company would return profits, so should my stocks. I prefer to invest based on fundamental values, but will consider the story of the company itself when necessary.

Analyst’s Disclosure: I am/we are long BLK, AMP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a financial adviser and all investors should complete their own due diligence before making any investment decision.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.