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With a yield of just under 5%, Prudential Financial (SYM: PRU) is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, retirement planning, investment management, and other products and services to both retail and institutional customers throughout the United States and in over 40 other countries.
The company just declared a quarterly dividend of $1.35 a share, which is payable on September 11 to shareholders of record as of August 19.
This also marks the company’s 17th consecutive year of dividend increases.
Even better, in its most recent quarter, the company just returned $735 million in capital to shareholders. That included $250 million in stock buybacks, and $485 million in dividends, as compared to $725 million year over year.
Making PRU even more attractive, analysts at Morgan Stanley say life insurance companies are rapidly evolving into influential players in the credit markets, as noted by Seeking Alpha. Pius, the firm says life insurance companies have seen their AUMs (assets under management) expand by about $1 trillion over the last four years.
“This growth has outpaced the expansion of traditional credit markets,” added Morgan Stanley, as again noted by Seeking Alpha.
Earnings have also been solid.
Prudential Financial just posted EPS of $3.58, which beat estimates by 36 cents. Revenue of $13.51 billion, down 2.42% year over year, beat by $107.06 million. AUM soared to $1.58 trillion from $1.482 trillion year over year.
Prudential’s PGIM, its global investment management business, posted adjusted operating income of $229 million, as compared to $206 million year over year. Its US businesses posted adjusted operating income of $955 million from $1.023 billion year over year thanks to an unfavorable comparable impact from annual assumptions.
Retirement Strategies, which consists of Institutional Retirement Strategies and Individual retirement Strategies, posted adjusted operating income of $722 million, compared to $989 million year over year. International Businesses reported adjusted operating income of $761 million, as compared to $702 million year over year.
In short…
With a healthy yield of just under 5%, Prudential Financial is a powerhouse. With strong earnings growth, and its dedication to returning capital to shareholders, Prudential Financial remains attractive for the long haul.
Remember, as noted above, in its most recent quarter, the company just returned $735 million in capital to shareholders. That included $250 million in stock buybacks, and $485 million in dividends, as compared to $725 million year over year.
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Written by Ian Cooper