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Stock impact report

First American Financial (NYSE:FAF) Will Pay A Larger Dividend Than Last Year At $0.53 [Yahoo! Finance]

First American Corporation (New) (FAF) 
Last first american corporation (new) earnings: 4/23 06:45 am Check Earnings Report
US:NYSE Investor Relations: investors.firstam.com
Company Research Source: Yahoo! Finance
First American Financial Corporation NYSE:FAF ) will increase its dividend on the 15th of September to $0.53, which is 1.9% higher than last year's payment from the same period of $0.52. This will take the annual payment to 3.5% of the stock price, which is above what most companies in the industry pay. First American Financial's Dividend Is Well Covered By Earnings We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Prior to this announcement, First American Financial's dividend made up quite a large proportion of earnings but only 48% of free cash flows. Since the dividend is just paying out cash to shareholders, we care more about the cash payout ratio from which we can see plenty is being left over for reinvestment in the business. Over the next year, EPS is forecast to expand by 46.8%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 69% which would be quite comfortable Show less Read more
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