Principal Financial Group (PFG) Declares $0.64 Dividend

Principal Financial Group said on January 30, 2023 that its board of directors declared a regular quarterly dividend of $0.64 per share ($2.56 annualized). Shareholders of record as of March 14, 2023 will receive the payment on March 31, 2023. Previously, the company paid $0.64 per share.

At the current share price of $92.55 / share, the stock's dividend yield is 2.77%. Looking back five years and taking a sample every week, the average dividend yield has been 4.11%, the lowest has been 2.73%, and the highest has been 9.27%. The standard deviation of yields is 0.92 (n=237).

The current dividend yield is 1.47 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.12. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.14%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 12.38% Downside

As of January 31, 2023, the average one-year price target for Principal Financial Group is $81.09. The forecasts range from a low of $65.65 to a high of $94.50. The average price target represents a decrease of 12.38% from its latest reported closing price of $92.55.

The projected annual revenue for Principal Financial Group is $13,777MM, a decrease of 25.37%. The projected annual EPS is $7.13, a decrease of 65.54%.

Fund Sentiment

There are 1332 funds or institutions reporting positions in Principal Financial Group. This is an increase of 63 owner(s) or 4.96%.

Average portfolio weight of all funds dedicated to US:PFG is 0.2374%, an increase of 7.0061%. Total shares owned by institutions decreased in the last three months by 1.07% to 208,433K shares.

What are large shareholders doing?

Bank Of America holds 19,805,105 shares representing 8.09% ownership of the company. In it's prior filing, the firm reported owning 19,453,884 shares, representing an increase of 1.77%. The firm decreased its portfolio allocation in PFG by 70.80% over the last quarter.

Nippon Life Insurance holds 18,137,000 shares representing 7.41% ownership of the company. No change in the last quarter.

Capital Research Global Investors holds 10,149,848 shares representing 4.15% ownership of the company. In it's prior filing, the firm reported owning 11,889,843 shares, representing a decrease of 17.14%. The firm decreased its portfolio allocation in PFG by 2.73% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,423,374 shares representing 3.03% ownership of the company. In it's prior filing, the firm reported owning 7,435,534 shares, representing a decrease of 0.16%. The firm increased its portfolio allocation in PFG by 12.42% over the last quarter.

VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 5,747,729 shares representing 2.35% ownership of the company. In it's prior filing, the firm reported owning 5,816,553 shares, representing a decrease of 1.20%. The firm increased its portfolio allocation in PFG by 11.61% over the last quarter.

Principal Financial Group Background Information
(This description is provided by the company.)

Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Its employees are passionate about helping clients of all income and portfolio sizes achieve their goals - offering innovative ideas, investment expertise and real-life solutions to make financial progress possible.

This story originally appeared on Fintel.