Recent Buy – Principle Financial Group Inc $PFG

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Phew!! What a busy few weeks and continue to be busy.

I had a number of issues with water this year that make me value Dividend Growth Investing even more.

  • I finally fix the water leak in my garage. I had to open a hole in between the beams that the water line went through. Yikes!
  • My tenant turn the AC down to the 60s (that caused the AC to freeze up) This unit I paid for the utilities, no wonder I get this kind of reaction when the temp is in the 80s. Yikes!
  • My mother-in-law wanted a new bed, the one that she can lift the head and the foot. That took us a few shopping trip. She looked at the advertisement and saw $699, $799 … turned out that’s was just the frame. LOL 🙂 **Nonetheless, I’d like to buy some Room-to-go stock, because they were very effective at advertisement. At least we ended up spending $1400. That was a big ticket item for say … $1 advertisement??
  • My mother-in-law’s dish washer went out. We bought one, and installed it ourselves to save $150 installation fee. I enjoy the installation process. I felt a sense of accomplishment. But it was still took away my resting time on the weekend (I worked that weekend, so it was after work). 🙂
  • My mother-in-law’s toilet was making noise, not attach to the flange at all. The floor was concrete and the old flange was cast iron. LOL. My brother in-law said 1 hour. I said 4 hours. I took us from 2pm-10pm and I had to call my plumber for re-reinforcement.

That’s still not done, I’m going to fix the holes at some point.

  • My rental in the midwest, the roof was flat and the water leaked. I’m going to have to raise the roof and … can’t do it with less than $3K, and some of the window needed to be changed as they left the window opened and the window broke the crank. Yikes!! That’s another $2K. That’s more than what I make this year in gross. Yikes! Yikes! Yikes!

Anyhow, back to the easier life of collecting money from great business, shall we?

I’ve always like $PFG, mainly I used to live almost right across from the building. I woke up, look out on my window and I see the tallest building in town. I worked for a company that used $PFG 401K services, life insurance, etc services that they offered. And I don’t think that relationship would go away anytime soon as almost all the local business use PFG’s services. So the loyalty of customers are there. But I do feel like they might not grow as fast as some start-up or better name like $JPM, $GS, etc.

But according to yahoo, they do some international exposure:

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 Special Administrative Region, India, Mexico, and Southeast Asia.

I bought 10 shares of $PFG at $58.xx. In the past I was able to buy them at $30s, but I had to unload them for cash to buy properties.

Dividend yields 3.5%, it’s still a little higher than 10-year tnote.

50-Day Moving Average 359.6

200-Day Moving Average 365.57

52 Week High 3 75.58
52 Week Low 3 54.89
Payout Ratio 4 23.73%

With the payout ratio is only at 23.73%, I think there is definitely room to grow on yield or issue for share buyback or even buying some small financial start-up to increase clientele with their cash pile.

I guess I missed the pull-back to the $54.xx level, but if it goes there again, I’ll definitely buying more.

Now, back to more water issues. Wish me luck!

2 Comments

  1. I bought a little earlier this month. In addition to your reasons they have a top-notch analyst in Seema Shah – only one of very few I listen to.

    Good luck with the plumbing!

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