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Principal Financial Group Inc. (PFG) is a leader in global investment management offering businesses, individuals, and institutional clients a wide range of financial products and services with $806.6 billion in assets under management as of December 31, 2020.
The company generated 37% of its revenue from Fees and Other Revenue, 32% of its revenue from Net Investment Income, 26% of its revenue from Premiums and Other Considerations, and the remainder from Net Realized Capital Gains during the first quarter of 2021.
Principal Financial Group reported first quarter earnings of $1.87 per share, beating consensus estimates by 60 cents. These earnings were driven by assets under management that increased $13.7 billion throughout the year, reaching a record $820.3 billion by the end of the quarter, helping drive net cash flow of $1.4 billion during the quarter.
Analysts have been lukewarm on the stock. For example, JPMorgan analyst Jimmy Bhullar raised his price target but reiterated a Neutral rating on the shares. Bhullar is less upbeat following the strong performance and expects long-term business fundamentals to remain lackluster, marked by weak return on equity, modest growth, and high tail risk.
The company raised its quarterly dividend by 8.9% to $0.61 per share, which represents a 3.74% forward yield. The dividend is payable on June 25, 2021 to shareholders on record as of June 3, 2021.
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