June 26, 2026 a 03:31 pm
PFG: Dividend Analysis - Principal Financial Group, Inc.
Principal Financial Group, Inc. is a well-positioned entity with a decent dividend yield and a long history of dividend payments. Despite moderate but steady growth, it demonstrates stability in shareholder rewards. The dividend yield of 3.10% and a payout ratio based on EPS at 43.08% indicate robust financial health.
📊 Overview
The financial overview presents a comprehensive picture of the company's dividend profile, highlighting key metrics of interest to investors.
| Parameter | Value |
|---|---|
| Sector | Financial |
| Dividend Yield | 3.10% |
| Current Dividend per Share | 3.03 USD |
| Dividend History | 25 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
A consistent dividend history is crucial for income-focused investors. The stability in payouts suggests reliable management and strong cash flow capabilities.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.62 |
| 2025 | 3.08 |
| 2024 | 2.85 |
| 2023 | 2.60 |
| 2022 | 2.56 |
📈 Dividend Growth
Undeniable proof of the company's commitment to shareholder value is apparent in its dividend growth, which reflects increasing cash flows and strategic reinvestment.
| Time | Growth |
|---|---|
| 3 Years | 6.36% |
| 5 Years | 6.58% |
The average dividend growth is 6.58% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio analysis provides insight into the company's dividend sustainability. Low ratios indicate room for maintaining or increasing dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 43.08% |
| Free Cash Flow-based | 18.03% |
Based on these ratios, the EPS payout ratio of 43.08% is healthy, offering scope for future dividend increases. The FCF payout ratio of 18.03% suggests strong cash flow covering dividends well.
Cashflow & Capital Efficiency
Key financial aspects such as cash flow stability and capital efficiency are essential indicators of financial health, impacting dividend sustainability.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 22.30% | 25.89% | 19.84% |
| Earnings Yield | 5.95% | 8.97% | 3.35% |
| CAPEX to Operating Cash Flow | 2.16% | 1.49% | 2.69% |
| Stock-based Compensation to Revenue | 0.70% | 0.67% | 0.73% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.84% | 98.51% | 97.31% |
The cash flow stability and capital efficiency are significantly stable, supporting robust dividend continuity.
Balance Sheet & Leverage Analysis
A strong balance sheet underlines the company's ability to meet its obligations and fuel growth, which is vital for dividend reliability.
| Ratio | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 33.27% | 37.05% | 36.57% |
| Debt-to-Assets | 1.16% | 1.31% | 1.31% |
| Debt-to-Capital | 24.97% | 27.04% | 26.78% |
| Net Debt to EBITDA | -0.29 | -0.05 | -0.71 |
| Current Ratio | 0.00 | 52.50 | 57.70 |
| Quick Ratio | 3.21 | 52.50 | 57.70 |
The company's leverage ratios and combined financial ratios reveal a well-managed balance sheet, reducing risks associated with debt.
Fundamental Strength & Profitability
Profitability is a key determinant of a company's ability to sustain and grow dividends.
| Fundamental | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 9.97% | 14.17% | 5.71% |
| Return on Assets | 0.35% | 0.50% | 0.20% |
| Margins: Net | 7.58% | 9.74% | 4.56% |
| Margins: EBIT | 9.08% | 11.72% | 5.41% |
| Margins: EBITDA | 10.69% | 13.31% | 7.40% |
| Margins: Gross | 45.19% | 45.59% | 43.17% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
The company's profitability margins and returns demonstrate a resilient operational capacity to support sustained dividend payouts.
Price Development
Dividend Scoring System
| Category | Score (1-5) | Visualization |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
Rating
Principal Financial Group, Inc. showcases a strong dividend profile with a solid payout history and manageable payout ratios, making it a commendable choice for dividend-seeking investors.
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