Dividends Q & A

Did Principal Financial Group, Inc. declare a common stock dividend in 2009 to shareholders?
Yes. On Oct. 26, 2009, the company announced that the board of directors of Principal Financial Group, Inc. declared an annual cash dividend of $0.50 per share. The dividend will be payable on Dec. 4, 2009 to shareholders of record as of the close of business Nov. 13, 2009.
When will I receive my common stock dividend payment?
Generally, shareholders who own Principal Financial Group, Inc. common stock on Nov. 13, 2009, should receive their dividend payment within a week after Dec. 4, 2009. If your shares are registered at our transfer agent, Computershare, and you have not received your dividend payment by Dec. 21, 2009, contact Computershare at 866.781.1368. If your shares are held by your broker and you have not received notice of the dividend by Dec. 28, 2009, contact your broker.
How will the amount of my common stock dividend check be determined?
The amount of the check will be based on the number of shares you own as of the record date (Nov. 13, 2009) multiplied by $0.50, less required tax withholding, if any.
Are there any tax consequences related to receiving this dividend check?
Please refer to the "Instructions for Recipients" that will be provided on the reverse side of Form 1099-DIV that is included with your dividend check. We also urge you to consult your tax advisor for definitive answers on your personal tax situation.
What if taxes are withheld from my dividend check?
If there is an amount shown in Box 4 on Form 1099-DIV, Computershare, the dividend-disbursing agent, was required to withhold federal income tax at a rate of 28 percent of your gross dividend. To avoid withholding from future cash dividends, you must certify your taxpayer identification number. To certify this, visit www.computershare.com, or call Computershare at 866.781.1368 for instructions.
Will the dividend I receive as a shareholder affect the dividends I receive as a policyholder?
No. Owners of dividend-paying policies issued by Principal Life Insurance Company continue to be eligible for policyholder dividends, as declared by its board. As always, policyholder dividends are not guaranteed and will vary due to factors such as investment and mortality experience.
Is there a program in place that would allow me to have my shareholder dividends reinvested directly into Principal Financial Group, Inc. common stock?
No. The Principal Financial Group does not offer a dividend reinvestment plan.
How did the board of directors determine a $0.50 per share dividend?
The declaration, payment and amount of our common stock dividend is based on several factors deemed relevant by the board. Those factors include results of operations, financial condition, cash requirements, available capital, future outlook, and regulatory restrictions.
Can I expect to continue receiving dividends if I hold PFG, Inc. common stock?
The board regularly reviews pertinent information and takes steps to maximize the long-term value of the Principal Financial Group to its shareholders. Although a dividend is never guaranteed, since becoming a public company in 2001, an annual dividend has been declared.
How is the common stock dividend different from the preferred stock dividend?
The common stock and preferred stock dividends are unrelated. For common stock, the board of directors of the Principal Financial Group regularly reviews the many factors that they deem relevant before deciding the amount and declaring any common stock dividend. Preferred stock dividends are different in that there are several restrictions that must be taken into account by the board when deciding to declare a dividend. Also, dividends on preferred stock, if declared by the board, are paid quarterly and at a fixed rate.

Additional Information

News Release: Principal Financial Group, Inc. Declares Annual Dividend on Common Stock
Dividend history

If you have other questions about PFG stock held at Computershare, please contact Computershare at 866.781.1368.