First American Financial Corporation
FAFFinancial Services · Stock · quarterly payer
Forward Yield
2.88%
Annual Dividend
$2.20
Payout Ratio
—
5-Yr Growth
4.1%
Ex-Date
—
Frequency
Quarterly
Summary
As of September 2026, First American Financial Corporation (FAF) yields 2.88% ($2.20 per share annually), with a blended fair-value estimate of $134.07 — +80% upside, so it screens as undervalued. Dividend safety grade: A (93/100). 14 years of dividend growth.
Is FAF a good dividend stock?
YesFirst American Financial Corporation (FAF) pays a quarterly dividend yielding 2.88% ($2.20/yr), with 14 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- 14 consecutive years of dividend growth
- Never cut its dividend on record
- Top-tier dividend safety score
Risks
- Single-stock concentration risk — diversify
Key Data
- Dividend Yield
- 2.88%
- Payout Ratio
- —
- Annual Dividend
- $2.20
- 5-Yr Avg Growth
- 4.1%
- Ex-Dividend Date
- —
- Years of Growth
- 14
- Frequency
- quarterly
- Beta
- 1.24
- Market Cap
- $7.8B
- P/E Ratio
- 10.3
- 5-Yr Total Return
- 11%
- 52-Week Range
- $56.20 – $79.87
- Dividend Safety
- A · 93/100
- Ever Cut?
- No
Frequently Asked Questions
FAF Price — Last 12 Months
Daily close
Price Return
1 Year
+16%
3 Years
+32%
5 Years
+11%
52-Week Range
$56.20 – $79.87
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is FAF worth?
Undervaluedlow confidenceOur blended fair-value estimate for First American Financial Corporation is $134.07 per share, versus a market price of $74.47. That implies 80% of upside — a margin of safety of about 44%.
Fair Value
$134.07
Current Price
$74.47
Upside
+80%
Margin of Safety
44%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 6.2% annual free-cash-flow growth. We model 20.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 10.5% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, $7.20 EPS, $2.20 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
FAF Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 8, 2026 | — | $0.5500 | regular |
| Mar 9, 2026 | — | $0.5500 | regular |
| Dec 8, 2025 | — | $0.5500 | regular |
| Sep 22, 2025 | — | $0.5500 | regular |
| Jun 9, 2025 | — | $0.5400 | regular |
| Mar 10, 2025 | — | $0.5400 | regular |
| Dec 9, 2024 | — | $0.5400 | regular |
| Sep 20, 2024 | — | $0.5400 | regular |
| Jun 10, 2024 | — | $0.5300 | regular |
| Mar 7, 2024 | — | $0.5300 | regular |
| Dec 7, 2023 | — | $0.5300 | regular |
| Sep 7, 2023 | — | $0.5300 | regular |
| Jun 7, 2023 | — | $0.5200 | regular |
| Mar 7, 2023 | — | $0.5200 | regular |
Income Calculator
At $2.20 / yr per share
