Principal Financial Dividend yield

 Price  73.41
 Dividend  2.56
 Earnings  6.86
 Cash-flow  12.24
 Book value  48.94
 Equity  47.97

Principal Financial is part of Life Insurance business, which is part of Financials industry. Principal Financial is a company from USA, and his stocks are publicly traded.

Principal Financial paid a total dividend of 668 million USD last year, for a market value of 19,160 millions (Market Cap 18,900 millions). Dividend per share of Principal Financial is 2.56 USD, and his stock market price 73.41 USD.

According to the chart below, where dividend yield is displayed, Principal Financial has a dividend yield of 3.49%, which is similar to the amount offered by both the market average and companies from USA. However, it is lower than the average of Financials industry. The company should be deeply analized because dividend yields should be similar among companies from the same industry unless they carry an opposite strategy.

In addition, you should compare Principal Financial dividend yield with other Life Insurance companies or firms from USA.

Dividend yield of Principal Financial

Principal Financial Dividend Payout

About the ability of Principal Financial to maintain his current dividend of USD 2.56 per share, an amount that accounts for 3.49%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Principal Financial payout on ernings is currently 37.32%, which is lower than the market average and companies of Financials industry, which are 38.25% and 41.38% respectively. Both figures lead us to believe that there is confidence that Principal Financialcan maintain his current dividend.

The payout on earnings should be complemented with the payout on cash flow since it is this last amount the one which can be distributed to shareholders. Cash flow per share of Principal Financial is USD 12.24 per share, which is higher than the dividend per share paid by the company of USD 2.56, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Principal Financial, compared againt world market average, USA companies, Financials industry and Life Insurance sector companies.

Principal Financial payout

Principal Financial Dividend History

Year Yield  USD  Paypout  Shares* 

*In millions

Principal Financial Stock performance

Finally, last moth Principal Financial showed a return of 3.90% compared to a worldwide 1.12% average, and a 1.75% of Financials firms. Over the last year, the company obtained a 22.40% versus a worldwide performance of a 5.73%. More detailed information can be seen in the following graph for USA and Life Insurance firms.

Principal Financial stock and market return