First American Financial Co. (NYSE:FAF) to Issue Dividend Increase – $0.54 Per Share

First American Financial Co. (NYSE:FAF) announced a quarterly dividend on Tuesday, September 10th, RTT News reports. Stockholders of record on Friday, September 20th will be given a dividend of 0.54 per share by the insurance provider on Friday, September 27th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.23%. The ex-dividend date is Friday, September 20th. This is a positive change from First American Financial’s previous quarterly dividend of $0.53.

First American Financial has increased its dividend payment by an average of 5.7% annually over the last three years and has increased its dividend annually for the last 15 consecutive years. First American Financial has a dividend payout ratio of 43.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect First American Financial to earn $5.05 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 42.8%.

First American Financial Price Performance

FAF opened at $66.97 on Thursday. First American Financial has a 1 year low of $49.55 and a 1 year high of $67.88. The stock’s 50 day simple moving average is $61.54 and its 200 day simple moving average is $57.74. The firm has a market cap of $6.95 billion, a price-to-earnings ratio of 32.04 and a beta of 1.29.

First American Financial (NYSE:FAF) last issued its earnings results on Wednesday, July 24th. The insurance provider reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.14. The firm had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.62 billion. First American Financial had a net margin of 3.28% and a return on equity of 7.98%. The business’s revenue was down 2.1% on a year-over-year basis. During the same quarter last year, the business earned $1.35 earnings per share. As a group, sell-side analysts anticipate that First American Financial will post 3.89 EPS for the current year.

Wall Street Analyst Weigh In

FAF has been the subject of several recent analyst reports. Stephens reaffirmed an “overweight” rating and set a $66.00 price objective on shares of First American Financial in a research note on Thursday, July 25th. Keefe, Bruyette & Woods upped their price target on First American Financial from $66.00 to $72.00 and gave the company an “outperform” rating in a research report on Wednesday, September 4th. Barclays dropped their price objective on First American Financial from $65.00 to $61.00 and set an “equal weight” rating for the company in a report on Tuesday, July 9th. Finally, Truist Financial boosted their target price on First American Financial from $65.00 to $68.00 and gave the company a “buy” rating in a research note on Friday, July 26th. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $66.75.

First American Financial Company Profile

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.