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First American Financial Corporation Dividends

FAF Stock Analysis

Page title

Section title

Dividend Yield
3.26%
Payout Ratio
58.68%
Dividend Amount Per Share
$2.12
Last Ex-Dividend Date
Sep 20, 2024

FAF Dividend Safety

FAF paid out 58.68% of its $217M earnings as dividends over the last 12 months.

Safe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

FAF's Dividend Payout Ratio of 58.68% is considered safe for the Financial Services sector, indicating that the company retains enough earnings to support business growth.

Interest Rate Coverage

FAF's Interest Coverage Ratio of 1.75 indicates a moderate safety margin, which could limit financial flexibility in managing debts.

Income Quality

FAF shows excellent income quality with a ratio of 1.634. This indicates high-quality earnings and low risk of dividend cuts.

FAF Dividend Growth

First American Financial Corporation(FAF) offers a dividend yield of 3.26% and pays $2.12 in dividends per share. Explore the historical dividend growth of FAF.

Dividend Stability

FAF has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

FAF's dividend payments have shown moderate growth, growing by 5.155% annually over the last 5 years.

Earnings Growth

FAF's earnings have shown very poor growth, shrinking by -21.064% over the last 5 years. Poor earnings growth or decline indicates potential struggles to maintain dividend levels, which may lead to cuts and affect overall returns.

FAF Dividend Yield Attractiveness

First American Financial Corporation(FAF) provides a dividend yield of 3.26%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

Peers

FAF

Sector

Industry

2.52%

3.26%

3.73%

3.93%

Dividend Yield

FAF's dividend yield of 3.26% is considered good compared to the sector average of 3.73%, providing a strong safety margin for investors.

FAF Cash Flow

Over the past 12 months, FAF generated $6B in revenue, produced $281M in free cash flow, and distributed $219M in dividends.

100%75%50%25%0%

Free Cash Flow Growth

FAF's free cash flow has decreased by -35.37% annually over the last 5 years, indicating a weak ability to generate cash and support dividend payments.

FAF Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by First American Financial Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.