Principal Financial Group (PFG) will raise its quarterly dividend to $0.41 per share. The new dividend will be payable on Dec. 27, 2016, to shareholders of record as of Dec. 5, 2016.

"Through the first nine months of the year, we’ve reduced weighted average common shares outstanding by 4.8 million shares. Today we announced our third sequential quarterly dividend increase. We will continue to have a balanced approach to capital deployment", according to CFO Terry Lillis.

With today's dividend hike Principal Financial has raised its total dividend by more than 13% in 2016. Based on a $55.27 stock price the new estimated dividend yield is 3.1%.

Principal Financial Group, Inc. is a global investment management company offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its financial services companies.  The company provides long-term investment strategies to institutional, retirement, high net worth and retail clients through equity, fixed income, real estate and other alternative investments, as well as fund offerings. PFG has four reportable segments: Retirement and Income Solutions, Principal Global Investors, Principal International and U.S. Insurance Solutions. The company completed its initial offering on October 26, 2001 at a price of $18.50 per share and dividends have been paid since Q4 of 2002.