First American Financial Corporation (NYSE:FAF) Declares Quarterly Dividend of $0.55

Key Points

• First American Financial declared a quarterly dividend of $0.55 per share, payable October 5 to shareholders of record on September 28. The dividend implies a 3.1% annualized yield, and the company has raised its dividend for 15 consecutive years.
• The dividend appears well covered, with a current payout ratio of 35.9% and an expected forward payout ratio of 29.7% based on projected earnings.
• First American’s latest quarterly results exceeded expectations, with earnings of $2.08 per share and revenue of $2.11 billion; revenue increased 15% year over year. The stock was trading down 2.3% at $71.14.

First American Financial Corporation (NYSE:FAF - Get Free Report) declared a quarterly dividend on Wednesday, September 16th. Shareholders of record on Monday, September 28th will be given a dividend of 0.55 per share by the insurance provider on Monday, October 5th. This represents a c) dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Monday, September 28th.

First American Financial has increased its dividend by an average of 0.0%annually over the last three years and has raised its dividend every year for the last 15 years. First American Financial has a payout ratio of 35.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect First American Financial to earn $7.41 per share next year, which means the company should continue to be able to cover its $2.20 annual dividend with an expected future payout ratio of 29.7%.

First American Financial Trading Down 2.3%

FAF opened at $71.14 on Thursday. The company has a market cap of $7.26 billion, a price-to-earnings ratio of 9.85, a price-to-earnings-growth ratio of 0.67 and a beta of 1.21. The stock has a fifty day simple moving average of $73.06 and a two-hundred day simple moving average of $68.51. First American Financial has a 12-month low of $56.20 and a 12-month high of $79.87.

First American Financial (NYSE:FAF - Get Free Report) last released its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, topping analysts' consensus estimates of $1.80 by $0.28. The firm had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.03 billion. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. The company's revenue was up 15.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.53 EPS. On average, analysts predict that First American Financial will post 7.11 EPS for the current year.

Insiders Place Their Bets

In other First American Financial news, CAO Steven Adams sold 3,253 shares of the business's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the transaction, the chief accounting officer owned 10,234 shares of the company's stock, valued at approximately $767,447.66. The trade was a 24.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC purchased a new stake in First American Financial during the 2nd quarter valued at $73,000. Paragon Capital Management Ltd purchased a new position in shares of First American Financial in the 2nd quarter worth $223,000. Nykredit A S purchased a new position in shares of First American Financial in the 2nd quarter worth $242,000. Amundi grew its holdings in shares of First American Financial by 26.5% in the second quarter. Amundi now owns 12,177 shares of the insurance provider's stock worth $835,000 after acquiring an additional 2,549 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in First American Financial during the second quarter valued at $446,000. 89.05% of the stock is owned by hedge funds and other institutional investors.

About First American Financial

First American Financial Corporation NYSE: FAF provides title insurance, settlement services and risk solutions for real estate transactions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in ownership records, liens and other title-related issues.

The company also offers escrow and closing services, real estate data and analytics, valuation products, and technology solutions designed to support mortgage lenders, real estate professionals, homebuilders and commercial property participants.

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