Principal Financial Group (PFG) raises dividend by 2%

Principal Financial Group’s (NYSE:PFG) dividend was increased by 2%.  Its overall yield is 2.89%. The firm started paying a dividend in 2002.

Principal Financial Group is a large global provider of insurance, retirement, and asset management services. The firm operates through multiple segments including; Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions.  It provides services for 401(k), 403(b), and defined benefit pension plans.  It also offers group dental and vision insurance, life insurance, disability insurance, and claims administration.   The firm was founded in 1879 and is based in Des Moines, Iowa.

Principal Financial Group has maintained a three-year growth rate of dividends of 12.7 percent. Principal Financial Group currently ranks 8th in dividend yield within the large cap financial, asset management category. The quarterly dividend for the June payment will be $0.46 versus the prior year rate of $0.45 per share. Principal Financial Group is a member of our Top 100 Dividend Stocks.  (see below).

top-100

The dividend will be paid at the new higher rate on June 30, 2017, to shareholders of record at close of business on June 5, 2017. Principal Financial Group Inc. is currently priced at $63.71. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend
6/5/2017 0.46
3/2/2017 0.45
12/1/2016 0.43
8/31/2016 0.41
6/2/2016 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 Principal Financial Group is based upon our five key criteria for the Top 100 list, which include;

Category Value Score
Dividend Yield 2.89% 199
Dividend Growth (3-7 year avg) 15.9 172
Forward P/E 11.78 60
S&P Financial Rating BBB+ 118
Beta 1.30 466
Total Score 1,015
% Yield 3 Year Div. Growth Rate 7 Year Div. Growth Rate BV 2017 P/BV Ratio 10 yr P/BV Low 10 yr P/BV High 5 yr low Yield % 5 yr max Yield %
2.89% 12.7 19 40.35 1.58 0.70 2.40 1.84% 4.85%

Positives;

  • Principal Financial Group maintains an investment grade rating of BBB+.
  • Principal Financial Group has paid out a dividend consecutively for the past 15 years.
  • Principal Financial Group’s dividend yield is above that of the S&P 500 Index.

Negatives;

  • Principal Financial Group’s current dividend yield (2.89%) is below its five-year average historical dividend yield.
  • Principal Financial Group maintains a beta of 1.30, higher than the average company.
  • Principal Financial Group is trading above its ten-year average price/sales (P/S) ratio.

Latest Data;

2016 2015 2014 2013 2012
Earnings per Share 4.55 4.26 4.41 3.55 2.69
Annual Dividend 1.61 1.5 1.28 0.98 0.78
Payout Ratio 35.38% 35.21% 29.02% 27.61% 29.00%
Earnings per Share 2017 (projected) 5
Dividend 1.83
Payout Ratio 36.60%

Based on the firm’s investment grade rating, consistent dividend growth and elevated dividend yield, Principal Financial Group Inc. qualifies as one of our Top 100 Dividend Stocks

 

 Principal Financial Group Inc. Dividend Yield Chart (Click to enlarge)
pfg8

Chart Explanation:  Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years. 

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