First American Financial (FAF) and the Appeal of Affordable Dividend Stocks for Long-Term Investors

Core Insights - First American Financial Corporation (FAF) is recognized as one of the best affordable dividend stocks, appealing to long-term investors [1][2] Company Overview - First American Financial Corporation is a leading provider of title insurance, offering protection against ownership disputes and legal complications during property transactions. The company also provides settlement services, home warranty plans, trust banking, and real estate-related data and analytics solutions [2] - The primary revenue source for the company is the volume of residential and commercial property transactions, which is influenced by interest rates and the overall economic environment [2] Technological Advancements - In recent years, First American Financial has focused on modernizing its operations through technology investments. This includes digital transformation and automation initiatives, as well as the launch of new title and escrow platforms like Endpoint and Sequoia, which are currently in the initial market introduction phase [3] - The company's goal is to enhance customer experience by reducing expenses, increasing productivity, and providing a quicker, friction-free transaction process [3] Dividend Policy - First American Financial is recognized as a shareholder-friendly company with a strong history of dividend payments. On September 10, the board of directors increased the quarterly dividend by 1.9% to $0.55 per share, marking the 14th consecutive year of dividend increases [4] - As of October 2, the stock offers a dividend yield of 3.45% [4]