Here's Why We're Wary Of Buying First American Financial's (NYSE:FAF) For Its Upcoming Dividend
Here's Why We're Wary Of Buying First American Financial's (NYSE:FAF) For Its Upcoming Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see First American Financial Corporation (NYSE:FAF) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Accordingly, First American Financial investors that purchase the stock on or after the 10th of June will not receive the dividend, which will be paid on the 17th of June.
熟悉我们的读者都知道,我们在Simply Wall St喜欢分红派息,因此很高兴看到First American Financial Corporation (纽交所: FAF) 即将在未来四天内交易除权。除权日是公司记录日的前一天,即公司确定哪些股东有资格获得股息的日子。除息日具有重要意义,因为无论何时买入或卖出股票,交易至少需要两个工作日才能结算。因此,First American Financial的投资者在6月10日或之后购买股票将无法获得分红,该分红将在6月17日支付。
The company's next dividend payment will be US$0.53 per share, and in the last 12 months, the company paid a total of US$2.12 per share. Last year's total dividend payments show that First American Financial has a trailing yield of 3.9% on the current share price of US$55.03. If you buy this business for its dividend, you should have an idea of whether First American Financial's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
该公司的下一个股息支付将为每股0.53美元,在过去12个月中,该公司支付了每股总计2.12美元的股息。去年的总分红派息显示First American Financial在当前股票价格为55.03美元的情况下,具有3.9%的追踪收益率。如果您购买此业务以获得分红,则应了解First American Financial的分红是否可靠和可持续。这就是为什么我们应始终检查股息支付是否可持续以及公司是否正在成长的原因。
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. First American Financial paid out 101% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances.
股息通常是从公司利润中支付的,因此如果公司支付超过其收入,则其股息往往更容易被削减。First American Financial支付的收益为其收益的101%,这超出了我们的舒适范围,除非存在缓解情况。
When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut.
当公司支付的股息未被盈利很好地覆盖时,股息通常被认为更易受到削减的风险更大。
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
点击此处查看公司的支付比率以及未来分红的分析师预期。
![historic-dividend](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240605/0-c8b4db6b0107043d1a9e5d241d606625-0-192ffebb13f4141fbcefb441fb6aae64.png/big)
Have Earnings And Dividends Been Growing?
收益和股息一直在增长吗?
Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see First American Financial's earnings per share have dropped 13% a year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
收益下降的企业对股息股东来说更具风险。如果收益下降得足够厉害,公司可能被迫削减股息。读者将了解到,过去五年中,First American Financial的每股收益年均下降13%。如此大幅下降使得该股息的未来可持续性存疑。
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, First American Financial has increased its dividend at approximately 16% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. First American Financial is already paying out a high percentage of its income, so without earnings growth, we're doubtful of whether this dividend will grow much in the future.
测量公司股息前景的另一种重要方法是测量其历史股息增长率。在过去的10年中,First American Financial的股息平均每年增长约16%。当收益减少时,如果要支付更高的股息,则唯一的方法是支付更高的利润比例,从资产负债表中支出现金或借款。First American Financial已经支付了高比例的收入,因此,如果没有收益增长,我们对该股息是否会大幅增长持怀疑态度。
To Sum It Up
总结一下
From a dividend perspective, should investors buy or avoid First American Financial? Not only are earnings per share shrinking, but First American Financial is paying out a disconcertingly high percentage of its profit as dividends. Generally we think dividend investors should avoid businesses in this situation, as high payout ratios and declining earnings can lead to the dividend being cut. First American Financial doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.
从股息方面看,投资者应该买入或避免First American Financial?收益每股下降,而且First American Financial将过高的利润比例用于支付股息。一般来说,我们认为股息投资者应该避免处于这种情况的公司,因为高股息比率和下降的收益可能导致股息被削减。First American Financial似乎没有太多优势,我们不想冒险持有该股息。
So if you're still interested in First American Financial despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example, we've found 1 warning sign for First American Financial that we recommend you consider before investing in the business.
因此,即使First American Financial的股息质量很差,如果您仍然对该股感兴趣,您应该充分了解该股面临的风险。例如,我们发现了一项First American Financial的警告信号,我们建议您在投资该业务之前考虑该信号。
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
一般来说,我们不建议仅仅购买第一个股息股票。下面是一个经过策划的有趣的、股息表现良好的股票清单。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。