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

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

First American Financial has raised its dividend by an average of 5.7% per year over the last three years and has increased its dividend annually for the last 15 consecutive years. First American Financial has a 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 Stock Performance

Shares of FAF stock opened at $66.97 on Thursday. The company has a market capitalization of $6.95 billion, a PE ratio of 32.04 and a beta of 1.29. First American Financial has a 52-week low of $49.55 and a 52-week high of $67.88. The business’s fifty day moving average is $61.54 and its 200 day moving average is $57.74.

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

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Keefe, Bruyette & Woods lifted their target price on shares of First American Financial from $66.00 to $72.00 and gave the company an “outperform” rating in a research report on Wednesday, September 4th. Truist Financial lifted their price objective on shares of First American Financial from $65.00 to $68.00 and gave the stock a “buy” rating in a report on Friday, July 26th. Stephens reissued an “overweight” rating and issued a $66.00 target price on shares of First American Financial in a research note on Thursday, July 25th. Finally, Barclays dropped their price target on First American Financial from $65.00 to $61.00 and set an “equal weight” rating for the company in a research note on Tuesday, July 9th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target 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.