First American Financial Corporation (NYSE:FAF) Announces Dividend Increase - $0.55 Per Share

Key Points

• First American Financial Corporation announced a quarterly dividend increase to $0.55 per share, reflecting a 1.9% rise from the previous quarterly dividend of $0.54.
• The company has a payout ratio of 35.3%, indicating that its dividend is well-covered by earnings, with expected earnings of $5.86 per share for the next year.
• First American Financial's stock is currently trading at $66.14, having recently reported a 14.2% increase in quarterly revenue year-over-year.

First American Financial Corporation (NYSE:FAF - Get Free Report) announced a quarterly dividend on Wednesday, September 10th, RTT News reports. Stockholders of record on Monday, September 22nd will be paid a dividend of 0.55 per share by the insurance provider on Monday, September 29th. This represents a c) dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Monday, September 22nd. This is a 1.9% increase from First American Financial's previous quarterly dividend of $0.54.

First American Financial has a payout ratio of 35.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect First American Financial to earn $5.86 per share next year, which means the company should continue to be able to cover its $2.16 annual dividend with an expected future payout ratio of 36.9%.

First American Financial Stock Down 0.2%

Shares of FAF traded down $0.14 during trading hours on Monday, reaching $67.37. 98,779 shares of the company traded hands, compared to its average volume of 871,150. The stock has a market capitalization of $6.86 billion, a P/E ratio of 37.20 and a beta of 1.26. First American Financial has a 12-month low of $53.09 and a 12-month high of $70.92. The business has a fifty day moving average price of $62.56 and a 200-day moving average price of $61.35.

First American Financial (NYSE:FAF - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.40 by $0.13. The firm had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.78 billion. First American Financial had a net margin of 2.90% and a return on equity of 10.41%. The business's quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.27 earnings per share. As a group, research analysts predict that First American Financial will post 5.35 EPS for the current fiscal year.

First American Financial announced that its Board of Directors has authorized a share repurchase plan on Wednesday, July 23rd that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to purchase up to 5.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

About First American Financial

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.