Analysis – Principal Financial Group Inc. Increases Dividend by 3%

PFG

Principal Financial Group Incorporated announced a regular quarterly dividend of $.39 per share, a 3 percent increase from the prior rate of $.38 per share.  The dividend will be paid at the new higher rate on June 24, 2016 to shareholders of record at close of business on June 6, 2016.

Date Quarterly Dividend
6/6/2016 0.39
3/3/2016 0.38
12/3/2015 0.38
9/2/2015 0.38
6/4/2015 0.38
3/5/2015 0.36
12/4/2014 0.34
9/4/2014 0.34
6/5/2014 0.32
3/6/2014 0.28
12/5/2013 0.26
9/3/2013 0.26
5/30/2013 0.23
3/7/2013 0.23
12/6/2012 0.21
9/4/2012 0.21
5/31/2012 0.18
3/8/2012 0.18
11/8/2011 0.7
11/17/2010 0.55

Analysis of Valuation of Principal Financial Group Inc. (Symbol PFG).

Principal Financial is trading below its average price/book value (P/BV) range.  Principal Financial is trading above its average dividend yield range.

Price 5/4/16 % Yield 5 Year Div. Growth Rate BV 2016 P/BV  Ratio 10 yr P/BV  Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$41.98 3.73% 10.5 41 1.04 0.22 7.44 4.84% 1.73%

Principal Financial Group Inc. Dividend Yield Chart (Click to enlarge)

PFG5

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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