Yes, that is not a typo.
First American Financial (FAF) announced earlier this week a dividend increase of 100% from $.48 to $.96.
FAF is one of the largest title companies in the US and also provides property data and risk solutions to banks, lenders, and the real estate industry.
I have been a long time shareholder (10 plus years) and this investment has been nothing short of outstanding. I have sold shares over the years to help buy 2 cars and a wedding ring.
Since I currently own 545 shares, this will increase for annualized dividend income by $262. Needless to say, this is the largest dividend increase I have ever received in terms of percentage and go forward dividend income.
That's amazing. Raising 100% the dividend and stock repurchasing to boot. My only experience with them is they were my title company when I bought my house.
ReplyDeleteThey even bought you 2 cars and a ring. FAF has truly been good to you.
This company wasn't on my radar but it will now as I build my portfolio. It might be an interesting holding in the financial sector as an alternative to a bank.
Thanks for the heads up on this company.
Richie,
ReplyDeleteThanks for stopping by. FAF is obviously tied to the real estate/ mortgage industry so it is cyclical. I wouldn't necessarily add shares at currently levels but the new dividend will make it a little easier to hold in down cycles.
cheers,
AA
AA,
ReplyDeleteI am bit confused on how the company has been good to you? I am pro-dividend guy but the 10yr chart on this company is down 13% with some pretty SIGNIFICANT stomach dropping turns along the way (including what looks like a 66% drop mid-2010).
It is only when I start bringing the chart out 15, 20yrs does it start to look EXCITING. How long have you owned it?
Hi Evan,
ReplyDeleteI have owned for 10 plus years. The company is cyclical tied to the real estate / lending market. I have also bought a few times towards some of the lows and sold a few times towards the some of the highs over the years as well.
Also, mid-2010 the company spun off Corelogic (CLGX) and investors received 1 share of CLGX for every share of FAF they owned. Your chart is probaly showing the spin off as a drop.
cheers,
AA
Yes it was showing a crazy drop! Buying and selling at different points makes sense. I was just confused as the post made it seem you had just been holding (and selling for special occasions).
ReplyDeleteNice work!