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How Principal’s Higher Dividend and US$1.5 Billion Buybacks Will Impact Principal Financial Group (PFG) Investors

Simply Wall St·02/19/2026 10:25:53
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  • Principal Financial Group, Inc. recently announced a first-quarter 2026 cash dividend of US$0.80 per share, a one-cent increase over the prior quarter and 7% higher than the same period a year earlier, alongside updates that it completed share repurchases totaling 16,965,356 shares for US$1.50 billion across previously announced buyback programs.
  • The company also reported full-year 2025 revenue of US$15,625.5 million and net income of US$1,185.1 million, framing its higher dividend and completed buybacks as part of a broader capital return approach while overall earnings moved lower year on year.
  • We’ll now examine how Principal’s higher dividend and completed US$1.50 billion buybacks may influence its existing investment narrative and outlook.

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Principal Financial Group Investment Narrative Recap

To own Principal Financial Group, you need to believe in its ability to convert its retirement, asset management, and insurance franchises into dependable cash generation, even as market volatility pressures fees and margins. The higher dividend and completed US$1.50 billion in buybacks reinforce the emphasis on capital returns, but they do not materially change the near term tension between softer earnings and the need to maintain growth in assets under management.

The most relevant update here is the full year 2025 earnings release, which showed revenue of US$15,625.5 million and net income of US$1,185.1 million, both lower than a year earlier. Placing the richer dividend and sizable repurchases against this backdrop highlights the trade off investors face between enjoying capital returned today and monitoring how fee pressures and asset flows could influence earnings resilience tomorrow.

Yet beneath the higher dividend, investors should also be aware of how persistent fee compression and weaker inflows could...

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

Principal Financial Group's narrative projects $18.8 billion revenue and $2.2 billion earnings by 2028.

Uncover how Principal Financial Group's forecasts yield a $92.91 fair value, in line with its current price.

Exploring Other Perspectives

PFG 1-Year Stock Price Chart
PFG 1-Year Stock Price Chart

Some of the most optimistic analysts were expecting revenue near US$19.1 billion and earnings around US$2.3 billion by 2028, which is a much rosier view than consensus. When you set those expectations against today’s higher dividend and completed buybacks, it underlines how differently you can interpret the same business and why it is worth comparing several viewpoints before deciding what you believe.

Explore 3 other fair value estimates on Principal Financial Group - why the stock might be a potential multi-bagger!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

  • A great starting point for your Principal Financial Group research is our analysis highlighting 3 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.