On July 8, I initiated a position of Principal Financial Group(PFG), specifically 80 shares at $50.51 per share. This new position will allow me to make gross annual dividend income of $121.60.
Principal Financial Group, Inc.(PFG) provides retirement, asset management, and insurance products and services. It operates through Retirement and Investor Services, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Investor Services segment provides a portfolio of asset accumulation products and services for retirement savings and investment to businesses, institutional clients, and employees of business and other individuals. It offers products and services for defined contribution pension plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, and employee stock ownership plans; investment-only products; and annuities, mutual funds, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation and income annuity products, mutual funds, asset management, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, China, Hong Kong SAR, India, Mexico, and the Southeast Asia. This segment also promotes and advises on retirement and long-term investment products. The U.S. Insurance Solutions segment provides individual life insurance products comprising universal and variable universal life insurance and traditional life insurance; and specialty benefits consisting of group dental and vision insurance, individual and group disability insurance, and group life insurance, as well as non-medical fee-for-service claims administration services in the United States. It also provides insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is headquartered in Des Moines, Iowa. [Source: Yahoo! Finance]
– Yield on Cost : 3.0%
– 3 year average annual dividend growth rate: 28%
– Payout ratio : 34.6%
– PE(TTM) : 12.34
– FCF coverage : 2.54
I initially thought about adding a new position of AFLAC, but its entry yield was 2.55%. When I was looking for peer companies in the same industry, I came across PFG. Although still for less than four years, it is a dividend growth company
In addition, I have increased my commitment to some of the companies in my portfolio.
On July 7, I added 50 shares @ $50.45 per share + $1 commission to WPC(W.P. Carey Inc.) and 80 shares of KMI were added to my existing portfolio on July 8 at the average acquiring cost of $37.59 per share.
Full disclosure : PFG,KMI,WPC