Dividend Hike and Earnings Rebound Might Change the Case for Investing in Principal Financial Group (PFG)

• On October 27, 2025, Principal Financial Group announced an 8% increase to its quarterly dividend, declaring a US$0.79 per share payout for the fourth quarter, payable on December 19 to shareholders as of December 3, 2025.
• Alongside this dividend boost, the company reported strong third quarter results with US$3.68 billion in revenue and US$213.8 million in net income, reflecting a rebound from a net loss a year earlier and highlighting management's confidence in continued growth and capital returns.
• We'll now consider how this dividend increase and improved profitability could influence Principal Financial Group's longer-term outlook and investment narrative.

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Principal Financial Group Investment Narrative Recap

To be a shareholder in Principal Financial Group, you need to believe in the company’s ability to steadily grow its retirement and asset management businesses, even as the industry contends with unpredictable policy shifts and market volatility. This 8% dividend boost and rebound to quarterly profitability reinforce management’s confidence, but capital flows remain the most important near-term catalyst, while persistent net outflows and fee pressure are still the most significant risk. The recent news does not materially alter this dynamic.

Among recent updates, the $0.79 per share dividend announcement stands out, reflecting the company’s focus on rewarding shareholders during a period of improved earnings. Yet capital outflows, previously highlighted as a concern in quarterly disclosures, remain a risk to both near-term and future profitability if not addressed through continued business momentum.

But despite strong headlines and higher dividends, investors should remain aware that...

Read the full narrative on Principal Financial Group (it's free!)

Principal Financial Group's outlook points to $18.8 billion revenue and $2.2 billion earnings by 2028. This forecast relies on 7.5% annual revenue growth and a $1.1 billion increase in earnings from the current $1.1 billion.

Uncover how Principal Financial Group's forecasts yield a $87.83 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members produced three distinct fair value estimates for Principal Financial Group, ranging from US$87.83 to US$202.76 per share. While some view the shares as extremely undervalued, the recent rebound in profitability is offset by lingering concerns over capital outflows affecting near-term momentum, so consider how your view aligns with others before making up your mind.

Explore 3 other fair value estimates on Principal Financial Group - why the stock might be worth just $87.83!

Build Your Own Principal Financial Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Principal Financial Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Principal Financial Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Principal Financial Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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