Principal Financial Group, Inc. (NYSE:PFG) Declares Dividend Increase - $0.78 Per Share

Key Points

• Principal Financial Group, Inc. declared a quarterly dividend of $0.78 per share, marking a 2.6% increase from the previous dividend of $0.76, with a dividend yield of 3.88%.
• The company's payout ratio stands at 33.7%, indicating its dividend is well-covered by earnings, with analysts expecting earnings of $9.30 per share next year.
• Principal Financial Group's stock is currently rated as a "Hold" by analysts, with a consensus price target of $86.30.

Principal Financial Group, Inc. (NYSE:PFG - Get Free Report) declared a quarterly dividend on Monday, July 28th, RTT News reports. Shareholders of record on Thursday, September 4th will be given a dividend of 0.78 per share on Friday, September 26th. This represents a $3.12 annualized dividend and a yield of 3.88%. This is a 2.6% increase from Principal Financial Group's previous quarterly dividend of $0.76.

Principal Financial Group has a payout ratio of 33.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Principal Financial Group to earn $9.30 per share next year, which means the company should continue to be able to cover its $3.04 annual dividend with an expected future payout ratio of 32.7%.

Principal Financial Group Stock Performance

PFG stock traded down $0.66 during trading hours on Monday, hitting $80.39. 1,677,226 shares of the stock were exchanged, compared to its average volume of 1,399,691. The company has a current ratio of 0.29, a quick ratio of 0.30 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $18.02 billion, a P/E ratio of 12.03, a P/E/G ratio of 0.76 and a beta of 0.99. The company has a 50-day simple moving average of $78.63 and a two-hundred day simple moving average of $79.93. Principal Financial Group has a 12 month low of $68.39 and a 12 month high of $91.97.

Principal Financial Group (NYSE:PFG - Get Free Report) last issued its quarterly earnings results on Monday, April 28th. The company reported $1.81 EPS for the quarter, missing analysts' consensus estimates of $1.83 by ($0.02). Principal Financial Group had a return on equity of 14.68% and a net margin of 9.74%. During the same period in the prior year, the firm posted $1.65 earnings per share. On average, analysts forecast that Principal Financial Group will post 8.5 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages recently commented on PFG. Barclays raised their price target on Principal Financial Group from $76.00 to $80.00 and gave the stock an "underweight" rating in a research report on Monday, July 7th. Morgan Stanley reiterated an "underweight" rating and issued a $75.00 target price (up previously from $71.00) on shares of Principal Financial Group in a research report on Monday, July 14th. Piper Sandler lifted their target price on Principal Financial Group from $88.00 to $89.00 and gave the company an "overweight" rating in a research report on Thursday, July 3rd. Keefe, Bruyette & Woods lifted their target price on Principal Financial Group from $87.00 to $90.00 and gave the company a "market perform" rating in a research report on Wednesday, July 9th. Finally, UBS Group reduced their price target on Principal Financial Group from $93.00 to $80.00 and set a "neutral" rating on the stock in a report on Tuesday, April 29th. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat, Principal Financial Group presently has a consensus rating of "Hold" and an average price target of $86.30.

Hedge Funds Weigh In On Principal Financial Group

Institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC lifted its stake in Principal Financial Group by 24.1% in the first quarter. NewEdge Advisors LLC now owns 7,503 shares of the company's stock valued at $633,000 after buying an additional 1,455 shares during the period. Empowered Funds LLC raised its position in shares of Principal Financial Group by 11.9% during the first quarter. Empowered Funds LLC now owns 4,678 shares of the company's stock worth $395,000 after purchasing an additional 497 shares during the period. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Principal Financial Group during the first quarter worth approximately $244,000. 75.08% of the stock is owned by institutional investors and hedge funds.

About Principal Financial Group

Principal Financial Group, Inc provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services.

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