2025 Dividend Speculation

[KFRCanuk]

I think they keep it at $15 but what do i know.

 

Historical dividend.

 

 

 

 

 

[wondering]

Fairfax is not known as a big dividend payer, but the dividend growth rate from 2006 ($1.40/share) to 2024 ($15/share) comes to compounded annual growth rate of 14% - calculated with a cheapo online calculator.

 

Not a bad growth rate!

 

My prediction is that they increase the dividend to $17-20/share.  As we creep closer to intrinsic value, the share buybacks become less valuable and regular dividends seem more appropriate.  Of course, I could be way off and share buybacks could still offer tremendous value.

[Hoodlum]

I think Fairfax will stand pat with the dividend this year and then possibly go to $20 the following year.  The extra cash this year can be used towards taking out remaining minority owners of subs.  

[nwoodman]

I hope they don’t raise it for another 10 years.  I understand the background to paying a dividend in the first place (management compensation/cashflow) and hopefully $15/share suffices.  Fairfax hardly seems short on ideas for capital allocation so retaining earnings surely is the best course of action. 
 

Selfishly, for me the tax implications of recycling the dividend back into Fairfax shares are horrible. 

[Parsad]

On 12/23/2024 at 1:30 PM, Hoodlum said:

I think Fairfax will stand pat with the dividend this year and then possibly go to $20 the following year.  The extra cash this year can be used towards taking out remaining minority owners of subs.  

 

+1!  I suspect this is closer to what will actually happen.  Maybe next year or the year after, but probably not this year.  Cheers!

[Xerxes]

$20 in 2024 and then fixed for a few years  

[petec]

On 12/25/2024 at 2:41 AM, Parsad said:

 

+1!  I suspect this is closer to what will actually happen.  Maybe next year or the year after, but probably not this year.  Cheers!

 

My thinking also.

 

I do wish they'd move to quarterly though. 

[Hoodlum]

Dividend announced at $15/share as most here expected.

https://www.fairfax.ca/press-releases/fairfax-declares-annual-dividend-2025-01-03/