I bought more shares of Principal Financial Group (NYSE: PFG). The stock is down 7.5% this morning on the news of missed earnings. PFG reported earnings of $1.02 per share, 6.42% below the same quarter a year ago; and below the mean consensus estimate of $1.05. This along with market softness led to a buying opportunity. I bought 40 shares at $34.85, totaling $1,403.31. This latest buy increases my shares of PFG from 60 to 100. This buy adds $60 to my annual dividend income.
PFG – My Cost Basis and Logic
This is the second lot of Principal Financial Group shares I’ve bought in the past 30-days. My cost basis on 100 shares is $37.88 per share. To learn more about PFG and to see my analysis of the company, visit my blog post from earlier in the month on Principal Financial Group.
The logic behind this second stock purchase of PFG is to get to 100 shares or as I call it my minimum number of shares for a complete position. I like to own 100 shares of stock so I can sell covered calls. I don’t always sell calls, but I like having the option to do so.
I’m watching a few other stocks that I may load up on in later this month or early March. Whether I by or not is dependent on how the market performs in coming weeks. Right now, there is plenty of value out there. Will it still be there in March? Time will tell. I’m also watching the followong stocks: Metlife, Ameriprise, Toronto-Dominion Bank, Bank of Nova Scotia, and the Royal Bank of Canada.
What do you think of my PFG stock buy? Are you buying stocks or holding your cash? Are there any sectors you are watching closely for buying opportunities?