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AMP's $5.5B Buyback Aids Shareholder Returns: Will It Be Sustainable?
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Key Takeaways
Ameriprise Financial authorized an additional $5.5B for share repurchases through Sept. 30, 2028.
AMP returned $1.9B in the first half of 2026, including 3.3M through shares repurchased.
Excess capital and liquidity support buybacks, while other investments compete for cash.
Ameriprise Financial, Inc. (AMP - Free Report) announced that its board authorized an additional $5.5 billion for repurchasing common shares through Sept. 30, 2028. The authorization expands the company’s existing buyback program as Ameriprise continues to return capital to shareholders.
As of June 30, 2026, approximately $1.1 billion remained available under the previous authorization, which runs through June 30, 2027.
Ameriprise’s balance sheet provides capacity to support its capital return strategy. As of June 30, 2026, the company had $2.1 billion of excess capital and $2.8 billion of holding company liquidity. It also generated approximately 90% of free cash flow, providing additional flexibility to fund share repurchases.
Apart from share repurchases, Ameriprise also rewards shareholders through steadily rising dividends. In April 2026, the company increased its quarterly dividend for the 19th time since 2010, underscoring management’s confidence in its earnings power. The company’s consistent dividend growth reflects its strong earnings generation and commitment to returning capital to shareholders.
In the first half of 2026, Ameriprise returned $1.9 billion of capital to shareholders, including the repurchase of 3.3 million shares, 43% more than in the year-ago period. Over the past 10 years, the company has returned approximately $25 billion to shareholders, equivalent to roughly 90% of operating earnings, while reducing its share count by 45% over the same period.
Capital Returned to Shareholders
Image Source: Ameriprise Financial, Inc.
The additional authorization extends this established capital return strategy through September 2028.
Our Take on Ameriprise
The additional $5.5 billion authorization gives Ameriprise greater flexibility to continue returning capital through share repurchases. Excess capital, holding company liquidity and free cash flow generation provide financial support for the program, while the company’s long-term capital return history underscores the role of repurchases in its capital-allocation strategy. The company continues to invest in technology, artificial intelligence, advisor recruitment and business expansion, creating competing uses for capital.
Over the past year, AMP shares have gained 1.2% against the industry’s 13.8% decline.
Capital Distribution Strategy of Ameriprise’s Peers
Apollo Global Management (APO - Free Report) continued to balance growth investments with capital distributions to shareholders. As of June 30, 2026, the company had $25.4 billion in unrestricted cash and cash equivalents, $5.6 billion of available funds from its Apollo Global Management (AGM) credit facility, Athene Holding Ltd. (AHL) credit facility and AHL liquidity facility, and $5.76 billion in long-term debt, providing financial flexibility to support capital distributions.
Apollo increased its quarterly dividend 10.3% to 56.25 cents per share in May 2026. Over the last 12 months, Apollo repurchased $1.6 billion of common stock and distributed more than $1 billion in common stock dividends. As of June 30, 2026, $3.03 billion remained available under its share repurchase authorization.
Ares Management (ARES - Free Report) continued to return capital to shareholders while maintaining flexibility to support its growth initiatives. The company has a strong track record of increasing dividends, with management targeting more than 20% annual dividend growth over the long term. The quarterly dividend has risen steadily alongside the company’s earnings growth, reflecting its commitment to returning capital to shareholders. Management expects annual dividends per common share to exceed $7.66 by 2028, supported by its target of more than 20% compound annual growth in dividends.
Ares also maintains an additional capital-return option through share repurchases. In February 2026, the board renewed a $750 million Class A share repurchase authorization through March 2027. No shares were repurchased under the program during the first half of 2026, leaving the authorization available for future repurchases. Management expects to sustain strong capital distributions, supported by its target of 16-20% or more annual organic growth in fee-related earnings and more than 20% annual growth in realized income over the medium term.
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AMP's $5.5B Buyback Aids Shareholder Returns: Will It Be Sustainable?
Key Takeaways
Ameriprise Financial, Inc. (AMP - Free Report) announced that its board authorized an additional $5.5 billion for repurchasing common shares through Sept. 30, 2028. The authorization expands the company’s existing buyback program as Ameriprise continues to return capital to shareholders.
As of June 30, 2026, approximately $1.1 billion remained available under the previous authorization, which runs through June 30, 2027.
Ameriprise’s balance sheet provides capacity to support its capital return strategy. As of June 30, 2026, the company had $2.1 billion of excess capital and $2.8 billion of holding company liquidity. It also generated approximately 90% of free cash flow, providing additional flexibility to fund share repurchases.
Apart from share repurchases, Ameriprise also rewards shareholders through steadily rising dividends. In April 2026, the company increased its quarterly dividend for the 19th time since 2010, underscoring management’s confidence in its earnings power. The company’s consistent dividend growth reflects its strong earnings generation and commitment to returning capital to shareholders.
In the first half of 2026, Ameriprise returned $1.9 billion of capital to shareholders, including the repurchase of 3.3 million shares, 43% more than in the year-ago period. Over the past 10 years, the company has returned approximately $25 billion to shareholders, equivalent to roughly 90% of operating earnings, while reducing its share count by 45% over the same period.
Capital Returned to Shareholders
Image Source: Ameriprise Financial, Inc.
The additional authorization extends this established capital return strategy through September 2028.
Our Take on Ameriprise
The additional $5.5 billion authorization gives Ameriprise greater flexibility to continue returning capital through share repurchases. Excess capital, holding company liquidity and free cash flow generation provide financial support for the program, while the company’s long-term capital return history underscores the role of repurchases in its capital-allocation strategy. The company continues to invest in technology, artificial intelligence, advisor recruitment and business expansion, creating competing uses for capital.
Over the past year, AMP shares have gained 1.2% against the industry’s 13.8% decline.
One-Year Price Performance
Image Source: Zacks Investment Research
Currently, Ameriprise Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capital Distribution Strategy of Ameriprise’s Peers
Apollo Global Management (APO - Free Report) continued to balance growth investments with capital distributions to shareholders. As of June 30, 2026, the company had $25.4 billion in unrestricted cash and cash equivalents, $5.6 billion of available funds from its Apollo Global Management (AGM) credit facility, Athene Holding Ltd. (AHL) credit facility and AHL liquidity facility, and $5.76 billion in long-term debt, providing financial flexibility to support capital distributions.
Apollo increased its quarterly dividend 10.3% to 56.25 cents per share in May 2026. Over the last 12 months, Apollo repurchased $1.6 billion of common stock and distributed more than $1 billion in common stock dividends. As of June 30, 2026, $3.03 billion remained available under its share repurchase authorization.
Ares Management (ARES - Free Report) continued to return capital to shareholders while maintaining flexibility to support its growth initiatives. The company has a strong track record of increasing dividends, with management targeting more than 20% annual dividend growth over the long term. The quarterly dividend has risen steadily alongside the company’s earnings growth, reflecting its commitment to returning capital to shareholders. Management expects annual dividends per common share to exceed $7.66 by 2028, supported by its target of more than 20% compound annual growth in dividends.
Ares also maintains an additional capital-return option through share repurchases. In February 2026, the board renewed a $750 million Class A share repurchase authorization through March 2027. No shares were repurchased under the program during the first half of 2026, leaving the authorization available for future repurchases. Management expects to sustain strong capital distributions, supported by its target of 16-20% or more annual organic growth in fee-related earnings and more than 20% annual growth in realized income over the medium term.