Why Principal Financial (PFG) is a Top Dividend Stock for Your Portfolio

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] Company Overview - Principal Financial (PFG) is based in Des Moines and operates in the Finance sector, with a year-to-date stock price change of 2.92% [3] - The company currently pays a dividend of $0.78 per share, resulting in a dividend yield of 3.92%, which is significantly higher than the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.51% [3] Dividend Performance - Principal Financial's annualized dividend of $3.12 has increased by 9.5% from the previous year, with an average annual increase of 5.97% over the last five years [4] - The current payout ratio is 40%, indicating that the company distributes 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $8.36 per share, reflecting a year-over-year growth rate of 19.94% [5] Investment Considerations - Principal Financial is positioned as an attractive investment opportunity due to its strong dividend yield and a favorable Zacks Rank of 2 (Buy) [6]