First American Financial Corporation
FAFFinancial Services · Stock · quarterly payer
Forward Yield
3.06%
Annual Dividend
$2.20
Payout Ratio
31%
5-Yr Growth
4.1%
Ex-Date
Jun 8, 2026
Frequency
Quarterly
Summary
As of September 2026, First American Financial Corporation (FAF) yields 3.06% ($2.20 per share annually), with a blended fair-value estimate of $94.37 — +31% 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 3.06% ($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
- Comfortable payout ratio (31%)
- Top-tier dividend safety score
Risks
- Single-stock concentration risk — diversify
Key Data
- Dividend Yield
- 3.06%
- Payout Ratio
- 31%
- Annual Dividend
- $2.20
- 5-Yr Avg Growth
- 4.1%
- Ex-Dividend Date
- Jun 8, 2026
- Years of Growth
- 14
- Frequency
- quarterly
- Beta
- 1.23
- Market Cap
- $7.3B
- P/E Ratio
- 10.0
- 5-Yr Total Return
- 7%
- 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
+12%
3 Years
+27%
5 Years
+7%
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 $94.37 per share, versus a market price of $71.78. That implies 31% of upside — a margin of safety of about 24%.
Fair Value
$94.37
Current Price
$71.78
Upside
+31%
Margin of Safety
24%
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.
At today's price, the market is pricing in about 5.2% annual free-cash-flow growth. We model 20.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 10.4% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, $7.21 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
