Principal Financial stock trades steady as recent earnings and dividend support valuation

Principal Financial Group Inc. (ISIN US74251V1026) stock represents a large US financial services player whose recent earnings and capital return metrics provide a key anchor for valuation. The Des Moines based insurer and asset manager is included in the S&P 500 index, giving Principal Financial stock broad visibility among institutional and retail investors. For investors, the latest reported earnings and dividend data frame the current risk reward profile.

Revenue up year over year

Principal Financial Group Inc. most recently reported annual results for fiscal 2024, with total revenue of approximately $15.0 billion, compared with around $13.5 billion in fiscal 2023, implying revenue growth of about 11% year over year. This expansion reflects contributions from retirement services, asset management, and insurance operations. In the same fiscal 2024 period, net income attributable to common shareholders was reported at roughly $1.6 billion, versus about $1.4 billion in fiscal 2023, indicating net income growth of around 14% year over year. The improvement in profitability was supported by higher fee based earnings and relatively stable claims experience in the insurance book.

On a per share basis, Principal Financial Group Inc. reported earnings per share for fiscal 2024 of about $6.50, compared with approximately $5.70 in fiscal 2023, which corresponds to EPS growth of roughly 14% year over year. This EPS progression reflects both revenue growth and ongoing share repurchases. The company has maintained an active capital management approach, returning capital through dividends and buybacks while sustaining regulatory capital ratios above internal targets.

Margin profile and capital returns

Operating margins in Principal Financial Group Inc.'s key segments remained resilient in the latest reported year. In fiscal 2024, the group level operating margin stood near 18%, versus roughly 17% in fiscal 2023, showing a modest margin expansion of about 1 percentage point. Retirement and income solutions generated stable fee income, while the global asset management arm benefited from higher average assets under management. Insurance margins were supported by underwriting discipline and the mix of products in US protection and specialty lines.

The company continued to emphasize shareholder returns in fiscal 2024. Cash dividends paid to common shareholders over the full year amounted to approximately $0.72 per share in quarterly installments, totaling about $2.88 per share for the year. This compared with total dividends of around $2.68 per share in fiscal 2023, representing dividend growth of roughly 7% year over year. Alongside dividends, Principal Financial Group Inc. executed share repurchases of around $700 million in fiscal 2024, versus approximately $600 million in fiscal 2023, underscoring management's confidence in the balance sheet and earnings outlook.

From a capital adequacy perspective, regulatory capital ratios and internal solvency metrics remained comfortably above company targets in the latest reporting cycle. The firm maintained a risk based capital ratio at the main insurance subsidiaries well above regulatory action levels, giving room for continued dividends and buybacks while absorbing potential volatility in markets or claims.

Principal Financial stock valuation and S&P 500 role

For valuation, investors typically compare Principal Financial Group Inc.'s earnings, dividend yield, and price to book ratio with peers in the US life insurance and retirement services sector. With reported fiscal 2024 EPS near $6.50 and an indicated annual dividend of about $2.88 per share, the payout ratio stands around 44%, a level that balances income with reinvestment and buybacks. The price to earnings multiple implied by recent trading ranges positions Principal Financial stock broadly in line with sector averages, while the dividend yield has been competitive relative to US large cap financials.

Principal Financial Group Inc. is a constituent of the S&P 500, and its inclusion in the index means its shares are held across index funds and exchange traded funds tracking US large cap benchmarks. This index membership supports trading liquidity and links the stock to flows in passive investment vehicles. For retail investors, the presence in mainstream US indices can simplify access via broad market funds, but the underlying earnings and capital return profile remain central for stock specific analysis.

Beyond headline metrics, Principal Financial Group Inc.'s business mix spans retirement products, asset management, and insurance, all of which contribute to earnings diversification. Retirement and income solutions generate fee and spread income on retirement accounts, while the global asset management arm earns management fees on assets under management. Insurance segments provide protection products with risk based pricing and underwriting. The combined model allows the group to benefit from long term growth in retirement savings and investment markets, while managing risk through insurance operations.

Retirement products and asset management

Principal Financial Group Inc.'s retirement and income solutions business offers employer sponsored retirement plans, individual retirement accounts, and related services. The segment earns fees on assets under administration and spread income on certain products where the company invests underlying balances. Over time, growth in retirement plan participation and asset values can translate into higher fee income. Fiscal 2024 segment results reflected higher average assets under administration compared with fiscal 2023, contributing to the overall revenue increase from approximately $13.5 billion to $15.0 billion.

The asset management arm of Principal Financial Group Inc., operating under the Principal Global Investors brand, manages assets for institutional and retail clients across fixed income, equity, and alternative strategies. Fee revenue depends on assets under management and product mix. In fiscal 2024, average assets under management were higher than in fiscal 2023, supporting fee growth. This part of the business links Principal Financial stock to broader developments in global capital markets, including interest rate trends, equity valuations, and demand for yield oriented strategies.

Insurance operations complement the retirement and asset management activities. Principal Financial Group Inc. offers life insurance, disability insurance, and specialty lines tailored to individuals and businesses. Underwriting results and claims experience influence insurance margins. In fiscal 2024, claims patterns remained within expectations, helping the group maintain operating margins around 18% versus roughly 17% in fiscal 2023. Managing underwriting standards and pricing is essential for sustaining margins in insurance lines, particularly as economic conditions and demographics evolve.

Principal Financial stock and recent trading context

Principal Financial Group Inc. shares trade on the Nasdaq exchange under the symbol PFG, giving Principal Financial stock access to a deep pool of liquidity among US large cap financials. As of mid 2025, the market capitalization of Principal Financial Group Inc. was in the region of $17 billion, reflecting investor appraisal of its earnings, capital returns, and risk profile. This market cap places the company among significant US financial services stocks, though smaller than the largest diversified insurers and asset managers.

In the context of recent trading, investors have weighed the impact of interest rate trends on Principal Financial Group Inc.'s investment income and product pricing. Higher interest rates typically support investment yields on fixed income portfolios, which can benefit spread based products, while also influencing the valuation of existing bond holdings. For retirement and asset management businesses, market volatility can affect asset values and flows, but long term demand for retirement solutions provides a structural tailwind.

Principal Financial stock performance over the past year has been influenced by these macro factors along with company specific earnings trends. With EPS rising from around $5.70 in fiscal 2023 to approximately $6.50 in fiscal 2024, and dividends increasing from roughly $2.68 per share to about $2.88 per share, the stock's total return has combined price appreciation with cash income for shareholders. The payout ratio near 44% indicates room for continued dividend growth if earnings expand further.

Fact box on Principal Financial Group Inc.