Ameriprise Financial Drops 1.72% in Trading Volume Ranking 331st Despite $4.5 Billion Stock Buyback and 8% Dividend Hike

On April 25, 2025, Ameriprise Financial (AMP) experienced a decline of 1.72%, with a trading volume of $247 million, ranking 331st in the day's trading activity.

Ameriprise Financial has authorized an additional $4.5 billion for the repurchase of its common stock, effective from April 24, 2025, through June 30, 2027. This move is part of the company's strategy to return capital to shareholders and enhance shareholder value. The company also announced an 8% increase in its quarterly dividend, reflecting its strong financial performance and commitment to shareholder returns.

In the first quarter of 2025, Ameriprise Financial reported adjusted operating earnings per diluted share of $9.50, marking a 13% increase from the previous year. This growth was driven by asset growth, enhanced operational efficiency, and higher transactional activity. The company's GAAP net income per diluted share was $5.83, compared to $9.46 a year ago, primarily due to market impacts on the valuation of derivatives and market risk benefits. Assets under management, administration, and advisement grew to $1.5 trillion, with adjusted operating net revenues increasing by 5%.

Ameriprise Financial's Advice & Wealth Management segment delivered strong performance, with pretax adjusted operating earnings of $792 million, up 4% year-over-year. The segment's adjusted operating net revenues increased by 9% to $2.8 billion, driven by core business performance and higher client assets. Total client assets grew by 7% to $1.0 trillion, with strong client flows of $10.3 billion. The segment added 82 experienced advisors during the quarter, further strengthening its advisor network.

The Asset Management segment reported pretax adjusted operating earnings of $241 million, a 17% increase from the previous year. This growth was driven by equity market appreciation and expense management actions, despite net outflows of $18.3 billion. The segment's net pretax adjusted operating margin grew to 43%, reflecting the underlying fee rate stability and operational efficiency improvements.

Ameriprise Financial's Retirement & Protection Solutions segment reported pretax adjusted operating earnings of $215 million, an 8% increase from the previous year. The segment's strong performance was driven by higher interest earnings and equity markets, with sales in traditional variable annuities and variable universal life increasing by 28% and 22%, respectively. The segment continued to generate strong free cash flow with excellent risk-adjusted returns, contributing to the company's diversified business model.