Saturday, March 15, 2014

FAF raises dividend 100%

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.


  1. 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.

    They 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.

  2. Richie,

    Thanks 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.


  3. AA,

    I 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?

  4. Hi Evan,

    I 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.


  5. 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).

    Nice work!