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Here's How Much a $1000 Investment in Ameriprise Financial Services Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Ameriprise Financial Services (AMP - Free Report) ten years ago? It may not have been easy to hold on to AMP for all that time, but if you did, how much would your investment be worth today?
Ameriprise Financial Services' Business In-Depth
With that in mind, let's take a look at Ameriprise Financial Services' main business drivers.
Headquartered in Minneapolis, MN, Ameriprise Financial, Inc. was founded in 1894 under the name Investors Syndicate. Notably, since 2005-end, Ameriprise has been operating independently of American Express Company. As of Dec 31, 2023, the company owned, managed and administered assets worth $1.36 trillion.
Ameriprise has been operating primarily through the following four business segments:
The Advice & Wealth Management (AWM) segment (contributing 55.7% to net revenues in 2023) provides financial planning and advice, as well as full service brokerage and banking services, primarily to retail clients through the company’s affiliated financial advisors.
The Asset Management segment (20.8%) provides investment advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Management and Threadneedle Asset Management Holdings Sàrl.
The Retirement & Protection Solutions segment (19.9%) includes Retirement Solutions (Variable Annuities and Payout Annuities) and Protection Solutions (Life and Disability Insurance).
Ameriprise realizes net investment income on corporate level assets from its Corporate & Other segment (3.6%). This includes excess capital held in RiverSource Life and other unallocated equity and revenues from various investments, as well as unallocated corporate expenses. Notably, following the reorganization of segments, the Fixed Annuities segment has been shifted here.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Ameriprise Financial Services a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $4,054.43, or a gain of 305.44%, as of April 9, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 180.91% and gold's return of 71.37% over the same time frame.
Analysts are forecasting more upside for AMP too.
Shares of Ameriprise have outperformed the industry over the past six months. The company remains well-positioned for top-line growth on the back of robust assets under management (AUM) balance and business restructuring initiatives. We anticipate GAAP net revenues and total AUM balance to witness a CAGR of 5% and 2.9%, respectively over the three years ended 2026. Moreover, given a solid balance sheet, the company's capital distribution activities seem sustainable and will likely enhance shareholder value. However, steadily rising expenses will likely keep hurting Ameriprise's profitability. We expect total expenses (GAAP) to rise 3.3% in 2024. Outflows in the Asset Management (AM) segment remains a major near-term concern. Further, the company's high dependence on the turbulent nature of the equity markets makes us apprehensive.
Over the past four weeks, shares have rallied 5.85%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Ameriprise Financial Services Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Ameriprise Financial Services (AMP - Free Report) ten years ago? It may not have been easy to hold on to AMP for all that time, but if you did, how much would your investment be worth today?
Ameriprise Financial Services' Business In-Depth
With that in mind, let's take a look at Ameriprise Financial Services' main business drivers.
Headquartered in Minneapolis, MN, Ameriprise Financial, Inc. was founded in 1894 under the name Investors Syndicate. Notably, since 2005-end, Ameriprise has been operating independently of American Express Company. As of Dec 31, 2023, the company owned, managed and administered assets worth $1.36 trillion.
Ameriprise has been operating primarily through the following four business segments:
The Advice & Wealth Management (AWM) segment (contributing 55.7% to net revenues in 2023) provides financial planning and advice, as well as full service brokerage and banking services, primarily to retail clients through the company’s affiliated financial advisors.
The Asset Management segment (20.8%) provides investment advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Management and Threadneedle Asset Management Holdings Sàrl.
The Retirement & Protection Solutions segment (19.9%) includes Retirement Solutions (Variable Annuities and Payout Annuities) and Protection Solutions (Life and Disability Insurance).
Ameriprise realizes net investment income on corporate level assets from its Corporate & Other segment (3.6%). This includes excess capital held in RiverSource Life and other unallocated equity and revenues from various investments, as well as unallocated corporate expenses. Notably, following the reorganization of segments, the Fixed Annuities segment has been shifted here.
In 2021, Ameriprise acquired BMO Financial Group’s EMEA asset management operations.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Ameriprise Financial Services a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $4,054.43, or a gain of 305.44%, as of April 9, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 180.91% and gold's return of 71.37% over the same time frame.
Analysts are forecasting more upside for AMP too.
Shares of Ameriprise have outperformed the industry over the past six months. The company remains well-positioned for top-line growth on the back of robust assets under management (AUM) balance and business restructuring initiatives. We anticipate GAAP net revenues and total AUM balance to witness a CAGR of 5% and 2.9%, respectively over the three years ended 2026. Moreover, given a solid balance sheet, the company's capital distribution activities seem sustainable and will likely enhance shareholder value. However, steadily rising expenses will likely keep hurting Ameriprise's profitability. We expect total expenses (GAAP) to rise 3.3% in 2024. Outflows in the Asset Management (AM) segment remains a major near-term concern. Further, the company's high dependence on the turbulent nature of the equity markets makes us apprehensive.
Over the past four weeks, shares have rallied 5.85%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.