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Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Fairfax Financial Holdings 5-Year Yield-on-Cost % Related Terms
TSX:FFH vs CB, PGR, TRV: 5-Year Yield-on-Cost % Comparison
For the Insurance - Property & Casualty subindustry, Fairfax Financial Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Fairfax Financial Holdings 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Fairfax Financial Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Fairfax Financial Holdings (TSX:FFH) has a 5-Year Yield-on-Cost % of 1.51 as of Aug. 06, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Fairfax Financial Holdings and its competitors. This is 56% below median its historical median of 3.42. Over the past decade, Fairfax Financial Holdings' 5-Year Yield-on-Cost % has ranged from 1.44 to 7.04. According to the industry distribution chart, Fairfax Financial Holdings ranks #355 out of 420 companies in the Insurance industry, placing it in the top 84.5%.
Is Fairfax Financial Holdings' 5-Year Yield-on-Cost % too high?
Fairfax Financial Holdings' current 5-Year Yield-on-Cost % of 1.51 is 56% below median its 10-year median of 3.42. Over the past 10 years, this metric has ranged from a low of 1.44 to a high of 7.04. The Insurance industry median 5-Year Yield-on-Cost % is 3.87. Fairfax Financial Holdings' value of 1.51 is 60.9% below this industry median. Based on the distribution chart, Fairfax Financial Holdings ranks #355 out of 420 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Fairfax Financial Holdings has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fairfax Financial Holdings' 5-Year Yield-on-Cost % compare to CB and PGR?
According to the Insurance industry distribution chart, Fairfax Financial Holdings ranks #355 out of 420 companies for 5-Year Yield-on-Cost %. This places Fairfax Financial Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.87. Fairfax Financial Holdings' value of 1.51 is 60.9% below this benchmark. Historically, Fairfax Financial Holdings' own 5-Year Yield-on-Cost % has ranged from 1.44 to 7.04 over the past decade. While the company's 10-year median is 3.42 vs. the industry median of 3.87, Fairfax Financial Holdings 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 5-Year Yield-on-Cost % for an Insurance company?
The median 5-Year Yield-on-Cost % among Insurance companies is 3.87, based on 420 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fairfax Financial Holdings's current 5-Year Yield-on-Cost % of 1.51 is 60.9% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Fairfax Financial Holdings and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairfax Financial Holdings's current 5-Year Yield-on-Cost % is 1.51, which is 56% below median its own 10-year median of 3.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairfax Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Fairfax Financial Holdings (TSX:FFH) is currently considered Fairly Valued. The stock's GF Value™ is C$2,255.83, compared to a current price of C$2,410.68 — trading 6.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.51, which is 56% below median its 10-year median of 3.42 and 60.9% below the Insurance industry median of 3.87. Fairfax Financial Holdings' overall GF Score™ is 86/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Fairfax Financial Holdings (TSX:FFH), the current 5-Year Yield-on-Cost % is 1.51 as of Aug. 06, 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 Fairfax Financial Holdings (TSX:FFH) Overvalued in 2026?
Based on GuruFocus' analysis, Fairfax Financial Holdings stock appears to be overvalued.
The current stock price of C$2,410.68 is trading 6.9% above its estimated GF Value™ of C$2,255.83.
GuruFocus considers Fairfax Financial Holdings to be Fairly Valued.
Key valuation signals for TSX:FFH:
5-Year Yield-on-Cost %: 1.51 (56% below median its 10-year median of 3.42)
GF Value™: C$2,255.83 vs. price of C$2,410.68 (6.9% above fair value)
Industry Position: 60.9% below the Insurance median (#355 of 420)
No single metric tells the full story. See the TSX:FFH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fairfax Financial Holdings provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chair and CEO, since its formation in 1985.
86GF Score
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