Fairfax dividend: payout, cash cover and yield
Fairfax pays US$15 per share in the forecast, with a stable history followed by occasional increases. Its cash generation is allocated across dividends, buybacks, acquisitions and capital kept in the group, so coverage depends on those competing uses.
How much does Fairfax pay in dividends?
The dividend remains US$15 per share in every base year. The bear case uses US$10, while the bull case uses US$20. The latest declaration was US$15, and the payment history shows stability followed by occasional increases rather than an annual escalator. Acquisition funding and parent liquidity argue against assuming a raise; a full cut requires materially weaker results or financial pressure.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends, per share | 14.88 | 15.03 | 9.81 | 9.86 | 9.91 |
| − Share buybacks, per share | 78.60 | 75.68 | 14.52 | 13.73 | 43.37 |
| = Kept, per share | 120.30 | 69.85 | 148.91 | 107.78 | 68.97 |
Does Fairfax’s dividend fit its cash generation?
From 2021 through 2025, Fairfax used earnings for dividends, repurchases, insurance obligations, investments, and acquisitions. Operating cash generation before purchases and sales of investments rose from US$4,026.6 million in 2021 to US$6,478.5 million in 2025. Net spending on premises, equipment, and intangible assets totalled US$2,281.9 million over the five years. Fairfax also borrowed while expanding: in 2025, the holding company and insurance businesses raised US$1,458.8 million and repaid US$212.1 million before revolving-facility movements.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Net income | 4,772.4 | 3,874.9 | 4,381.8 | 3,374.2 | 3,401.1 |
| = Earnings for common shareholders | 4,935.0 | 3,879.8 | 4,332.1 | 3,329.0 | 3,356.6 |
| − Dividends declared on common shares | 343.6 | 363.1 | 245.2 | 249.9 | 272.1 |
| − Share buybacks | 1,814.3 | 1,828.8 | 363.2 | 347.8 | 1,190.7 |
| = Kept to grow and build capital | 2,777.1 | 1,687.9 | 3,723.7 | 2,731.3 | 1,893.8 |
| Paid out, % of earnings for common | 43.7% | 56.5% | 14.0% | 18.0% | 43.6% |
What this means. The company did not report its own payout percentage, so these percentages are our calculation of dividends and share buybacks as a share of profit.
What could change Fairfax’s dividend?
The outcome turns on underwriting ratios, reserve development and catastrophe losses as pricing softens. Boots is expected to close in the first quarter of 2027; IDBI remains conditional on approvals and definitive agreements. Buyback authority runs through September 29, 2027, competing with acquisition funding for parent cash.
What is Fairfax’s dividend yield today?
At the current C$2,354.03, the shares trade at 1.3 times book value. Book value is the accounting value left for common shareholders after liabilities and other claims are deducted. It is not cash waiting to be withdrawn: Fairfax’s balance sheet includes investments, private businesses and estimated future insurance claims. Its insurance contract liabilities were US$50.998 billion in June 2026, so book value is a carefully constructed estimate, not a final sale price.
The trailing P/E, or price-to-earnings ratio, is 8.1 times. Investors therefore pay C$8.10 for each C$1 of recent earnings. The 0.9% dividend yield adds cash income, but neither measure explains how much profit comes from durable underwriting or temporary investment gains.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 2,354.03 |
| Market value (calculated) | 47,009.7 |
| P/E, last 12 months (calculated) | 8.1x |
| P/E, next 12 months (calculated) | 9.1x |
| Price to book (calculated) | 1.3x |
| Dividend yield (calculated) | 0.9% |
What this means. The dividend yield uses one yearly dividend payment, not four payments, because the company pays dividends once a year.