Principal Financial Dividend yield




   USD/share 
 Price  59.96
 Dividend  2.24
 Earnings  5.35
 Cash-flow  13.63
 Book value  46.12
 Equity  44.21

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 614 million USD last year, for a market value of 16,429 millions (Market Cap 16,231 millions). Dividend per share of Principal Financial is 2.24 USD, and his stock market price 59.96 USD.

According to the chart below, where dividend yield is displayed, Principal Financial has a dividend yield of 3.74%, which is higher than the amount offered by both the market average and companies from USA. It is also bigger than average of Financials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.

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 2.24 per share, an amount that accounts for 3.74%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Principal Financial payout on ernings is currently 41.87%, which is higher than the market average, and companies of Financials industry, which are 38.16% and 41.40% respectively. Both figures show that Principal Financial can have problems to keep with his present dividend yield.

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 13.63 per share, which is higher than the dividend per share paid by the company of USD 2.24, 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* 
Present3.74%2.2441.87%274
20204.52%2.2442.03%274
20194.00%2.2038.39%279
20185.86%2.5941.64%283
20172.78%1.9641.35%288
20162.84%1.6437.79%288
20152.95%1.5239.28%295

*In millions

Principal Financial Stock performance

Finally, last moth Principal Financial showed a return of 6.00% compared to a worldwide 4.25% average, and a 4.06% of Financials firms. Over the last year, the company obtained a 91.30% versus a worldwide performance of a 53.42%. More detailed information can be seen in the following graph for USA and Life Insurance firms.

Principal Financial stock and market return