Principal Financial Group offers a compelling dividend growth opportunity, operating behind the scenes in financial services with $1.8 trillion in assets under administration. PFG targets 9%-12% annual non-GAAP EPS growth, supported by strong Q3 2025 results, disciplined capital allocation, and a 16-year dividend growth streak. Shares trade at a forward P/E of 9.3, below the 10-year average, offering a 3.7% yield and potential for a 28% total return by 2026 if growth forecasts are met.
Principal Financial (PFG) reported earnings 30 days ago. What's next for the stock?
Principal Financial Group, Inc. (NASDAQ:PFG ) Q3 2025 Earnings Call October 28, 2025 10:00 AM EDT Company Participants Humphrey Lee - VP & Head of Investor Relations Deanna Strable - President, CEO & Chair of the Board Joel Pitz - Executive VP & CFO Christopher Littlefield - President of Retirement & Income Solutions Amy Friedrich - President of Benefits & Protection Kamal Bhatia - President & CEO of Principal Asset Management Conference Call Participants Francis Matten - BMO Capital Markets Equity Research Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division John Barnidge - Piper Sandler & Co., Research Division Jamminder Bhullar - JPMorgan Chase & Co, Research Division Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division Joel Hurwitz - Dowling & Partners Securities, LLC Suneet Kamath - Jefferies LLC, Research Division Thomas Gallagher - Evercore ISI Institutional Equities, Research Division Wesley Carmichael - Autonomous Research US LP Presentation Operator Good morning, and welcome to the Principal Financial Group Third Quarter 2025 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Humphrey Lee, Vice President of Investor Relations.
| - Industry | - Sector | Deanna Dawnette Strable-Soethout CEO | NASDAQ (NGS) Exchange | 74251V102 CUSIP |
| US Country | 19,700 Employees | 3 Dec 2025 Last Dividend | - Last Split | 23 Oct 2001 IPO Date |
Principal Financial Group, Inc., founded in 1879 and headquartered in Des Moines, Iowa, is a global financial investment management and insurance company. It offers a broad range of financial products and services to both individual and institutional clients across the globe. The company is organized into three main segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Through these divisions, Principal Financial Group addresses the retirement, investment, and insurance needs of its clients, attempting to secure their financial future in a changing market landscape.
This segment caters to various retirement planning and financial needs, offering products like 401(k) and 403(b) plans, defined benefit plans, nonqualified executive benefit plans, employee stock ownership plans, and equity compensation. It also provides individual retirement accounts (IRAs), investment products, mutual funds, individual variable annuities, registered index-linked annuities, bank products, and trust and custody services. This wide array of offerings aims to help individuals and organizations manage retirement savings and income efficiently.
This division specializes in managing assets across a diverse set of investment classes including equity, fixed income, real estate, and alternative investments. It provides asset allocation, stable value management, and other structured investment strategies, catering to a range of investment objectives. The segment also focuses on offering pension accumulation products and services, asset management for mutual funds, and income annuities. Additionally, it serves the international markets with voluntary savings plans in locations such as Brazil, Chile, Mexico, Asia, China, Hong Kong Special Administrative Region, and Southeast Asia, illustrating Principal's global reach in financial management services.
The Benefits and Protection segment offers specialty benefits including group dental and vision insurance, group life insurance, and both group and individual disability insurance. It also manages benefits for group dental, disability, and vision. For individuals, it provides life insurance products like universal life, variable universal life, indexed universal life, and term life insurance. Moreover, it delivers insurance solutions tailored to the needs of small and medium-sized businesses, their owners, and their employees. This comprehensive approach aims to protect clients' health, life, and income against unforeseen events.