Prudential: Solid Results Increase Likeliness Of Continued Dividend Raises

Core Viewpoint - Prudential (PRU) is viewed as a solid buy despite recent stock price declines, with potential for share accumulation at current levels [2][12] Company Performance - PRU reported Q2 earnings with mixed results, missing EPS expectations by $0.06 at$3.39 per share, while book value per share decreased to $77.51 [4] - Total assets under management increased to$1.48 trillion from $1.41 trillion year-over-year [4] - The US business segment generated$3.98 billion, accounting for 50% of earnings, with a 27% year-to-date growth driven by individual retirement strategies [5] Segment Analysis - The international segment saw sales of $532 million, up from$520 million in Q1 and $478 million in Q2 of the previous year, with growth attributed to Japan and Brazil [5] - PGIM, the global investment manager, experienced a 5$9.5 billion in third-party net outflows [6] Dividend Information - PRU maintains a dividend yield of 4.5%, above the sector median of 3.3%, with a consistent growth rate leading to a 9.28% CAGR over the last ten years [3][7] - The company has a payout ratio of approximately 40.7%, indicating a secure dividend with potential for future increases [7] Valuation and Outlook - An updated valuation suggests a fair value of $133 per share, representing a 17.6$119.50, indicating a potential upside of about 5.5% [10] Market Positioning - The company is well-positioned to capitalize on the upcoming retirement needs of the Gen Z population, which may drive sales of retirement strategies and insurance policies [10][12]