First American Financial Co. (NYSE:FAF) Declares Quarterly Dividend of $0.54

First American Financial Co. (NYSE:FAF) announced a quarterly dividend on Tuesday, November 5th. Shareholders who are on record as of Monday, December 9th will receive a dividend payment of $0.54 per share on Monday, December 16th. This dividend translates to an annual amount of $2.16 and indicates a dividend yield of 3.43%.

Over the past three years, First American Financial has managed to increase its dividend payment by an average of 5.7% each year. Remarkably, the company has consistently raised its dividend annually for the last 15 consecutive years. The company's payout ratio stands at 38.6%, indicating that its earnings sufficiently cover the dividend payments. Analysts predict that First American Financial will generate earnings of $5.14 per share next year. This projection suggests that the company will likely continue to support its $2.16 dividend with an expected payout ratio of 42.0% moving forward.

First American Financial Stock Performance

On Tuesday, shares of NYSE FAF saw an increase of 0.7%, rising by $0.44 to reach $62.99. The trading volume reached 463,800 shares, while the average trading volume was 671,451. With a market capitalization of $6.49 billion, First American Financial operates with a price-to-earnings ratio of 70.28 and possesses a beta of 1.29. Over the past year, the stock has recorded a low of $51.60 and a high of $67.88. Currently, the 50-day moving average price stands at $64.83, and the 200-day moving average price is recorded at $59.42.

Recently, First American Financial published its quarterly earnings results on October 23rd. The insurance company reported earnings of $1.34 per share for the quarter, surpassing analysts' expectations of $1.15 by $0.19. The reported revenue during this quarter was $1.41 billion, which fell short of analysts' expectations of $1.66 billion. The company’s return on equity for this period was noted at 7.95%, alongside a net margin of 1.58%. Compared to the same quarter last year, the company's quarterly revenue experienced a decline of 5.1%. This time last year, First American Financial recorded earnings of $1.22 per share. Overall, analysts anticipate that the company will achieve earnings per share of 3.94 for the current financial year.

Analyst Ratings and Insights

Recently, several investment analysts have shared their evaluations of First American Financial's stock. Truist Financial raised its price target from $68.00 to $73.00 and categorized the company with a "buy" rating on October 25th. Similarly, Barclays increased their price objective from $70.00 to $72.00, reiterating an "equal weight" rating. Keefe, Bruyette & Woods also raised their price target from $66.00 to $72.00 and assigned an "outperform" rating on September 4th. Moreover, Stephens upgraded their price target from $66.00 to $73.00 and issued an "overweight" rating on October 25th. Among analysts, one has assigned a hold rating, while four have given it a buy rating, leading to an average rating categorized as a "Moderate Buy". The consensus price target for the stock is recorded at $72.50.

About First American Financial

First American Financial Corporation, through its subsidiaries, provides a range of financial services. The company operates in two primary segments: Title Insurance and Services, and Home Warranty. The Title Insurance and Services segment specializes in issuing title insurance policies for residential and commercial properties, in addition to offering related services on an international scale.

Dividend, Earnings, Stock