Principal Financial (PFG) is a Top Dividend Stock Right Now: Should You Buy?

Group 1: Company Overview - Principal Financial (PFG) is based in Des Moines and operates in the Finance sector, with a year-to-date share price change of 5.28% [3] - The company currently pays a dividend of $0.78 per share, resulting in a dividend yield of 3.83%, which is significantly higher than the Insurance - Multi line industry's yield of 1.65% and the S&P 500's yield of 1.54% [3] Group 2: Dividend Performance - The current annualized dividend of Principal Financial is $3.12, reflecting a 9.5% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 5.97% [4] - The current payout ratio is 40%, indicating that the company pays out 40% of its trailing 12-month earnings per share as dividends [4] Group 3: Earnings Growth and Future Outlook - For the fiscal year, Principal Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $8.28 per share, representing an expected increase of 18.79% from the previous year [5] - The attractiveness of dividends is highlighted by their potential tax advantages and the ability to reduce overall portfolio risk, which can enhance stock investing profits [5] Group 4: Investment Opportunity - Principal Financial is positioned as a compelling investment opportunity, offering an attractive dividend and holding a strong Zacks Rank of 2 (Buy) [6]