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First American FinancialFAF +8.95%73 Dividend Payout Ratio is 0.26 as of Jun. 2026, which is 30% below its 10-year median of 0.37. GuruFocus rates FAF with a GF Score™ of 73/100 and a GF Value™ of $70.67 (Fairly Valued). The stock has 7 warning signs investors should review. Among 336 Insurance companies, First American Financial ranks better than 58.33% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. First American Financial's Dividend Payout Ratio for the
months ended in Jun. 2026 was 0.26.
The historical rank and industry rank for First American Financial's Dividend Payout Ratio or its related term are showing as below:
FAF'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.17 Med: 0.37 Max: 0.55
Current: 0.31
During the past 13 years, the highest Dividend Payout Ratio of First American Financial was 0.55. The lowest was 0.17. And the median was 0.37.
FAF's Dividend Payout Ratio is ranked better than 58.33% of 336
companies
in the Insurance industry
Industry Median: 0.38
vs FAF: 0.31
During the past 13 years, the highest Trailing Annual Dividend Yield of First American Financial was 4.83%. The lowest was 2.32%. And the median was 3.25%.
During the past 12 months, First American Financial's average Dividends Per Share Growth Rate was 1.90% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 1.90% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 3.90% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 7.50% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of First American Financial was 51.80% per year. The lowest was 1.90% per year. And the median was 11.90% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
First American Financial (NYSE:FAF) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
First American Financial Dividend Payout Ratio Related Terms
First American Financial Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for First American Financial's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First American Financial Dividend Payout Ratio Chart
FAF vs ACT, ESNT, MTG: Dividend Payout Ratio Comparison
For the Insurance - Specialty subindustry, First American Financial's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First American Financial Dividend Payout Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where First American Financial's Dividend Payout Ratio falls into.
First American Financial Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
First American Financial's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First American Financial (FAF) has a Dividend Payout Ratio of 0.26 as of Jun. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on First American Financial and its competitors. This is 30% below median its historical median of 0.37. Over the past decade, First American Financial's Dividend Payout Ratio has ranged from 0.17 to 0.55. According to the industry distribution chart, First American Financial ranks #140 out of 336 companies in the Insurance industry, placing it in the top 41.7%.
Is First American Financial's Dividend Payout Ratio too high?
First American Financial's current Dividend Payout Ratio of 0.26 is 30% below median its 10-year median of 0.37. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.55. The Insurance industry median Dividend Payout Ratio is 0.38. First American Financial's value of 0.26 is 31.6% below this industry median. Based on the distribution chart, First American Financial ranks #140 out of 336 companies in the Insurance industry, which is above the industry midpoint. Overall, First American Financial has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First American Financial's Dividend Payout Ratio compare to ACT and ESNT?
According to the Insurance industry distribution chart, First American Financial ranks #140 out of 336 companies for Dividend Payout Ratio. This puts First American Financial in the upper half of its industry. The industry median Dividend Payout Ratio is 0.38. First American Financial's value of 0.26 is 31.6% below this benchmark. Historically, First American Financial's own Dividend Payout Ratio has ranged from 0.17 to 0.55 over the past decade. While the company's 10-year median is 0.37 vs. the industry median of 0.38, First American Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Insurance company?
The median Dividend Payout Ratio among Insurance companies is 0.38, based on 336 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current Dividend Payout Ratio of 0.26 is 31.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on First American Financial and its competitors. For the Insurance industry, the median Dividend Payout Ratio is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current Dividend Payout Ratio is 0.26, which is 30% below median its own 10-year median of 0.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First American Financial stock overvalued right now?
Based on GuruFocus' analysis, First American Financial (FAF) is currently considered Fairly Valued. The stock's GF Value™ is $70.67, compared to a current price of $75.13 — trading 6.3% above its estimated fair value. The current Dividend Payout Ratio is 0.26, which is 30% below median its 10-year median of 0.37 and 31.6% below the Insurance industry median of 0.38. First American Financial's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For First American Financial (FAF), the current Dividend Payout Ratio is 0.26 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First American Financial (FAF) Overvalued in 2026?
Based on GuruFocus' analysis, First American Financial stock appears to be overvalued.
The current stock price of $75.13 is trading 6.3% above its estimated GF Value™ of $70.67.
GuruFocus considers First American Financial to be Fairly Valued.
Key valuation signals for FAF:
Dividend Payout Ratio: 0.26 (30% below median its 10-year median of 0.37)
GF Value™: $70.67 vs. price of $75.13 (6.3% above fair value)
Industry Position: 31.6% below the Insurance median (#140 of 336)
No single metric tells the full story. See the FAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First American Financial Corp is engaged in the business of providing title insurance, settlement services, and other financial services and risk solutions. The group's reportable segments are: Title insurance and services, Home warranty, and Corporate. Maximum revenue is generated from the Title insurance and services segment, which provides title insurance, closing, escrow, and related services domestically and internationally in connection with residential and commercial real estate transactions. This segment also provides solutions to mitigate risk and facilitate real estate transactions, along with offering banking, trust, warehouse lending, mortgage subservicing and wealth management services. The majority of the group's revenue is generated from escrow fees and insurance premiums.
73GF Score
Get the complete analysis for FAF
Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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