Why is Fairfax (TSX: FFH) trending and is it a dividend stock to buy?

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 Why is Fairfax (TSX: FFH) trending and is it a dividend stock to buy?
Image source: © 2022 Kalkine Media®      

Highlights

  • Fairfax Financial Holdings (TSX:FFH) is turning heads in the stock markets after announcing its Q4 FY2021 results on Thursday, February 10.
  • With Prem Wasta as its Chairman and CEO, the Toronto-headquartered financial company provides property and casualty insurance, reinsurance, and other investment management solutions.
  • The insurance provider managed to record growth in its fourth-quarter net earnings, which were US$ 931.3 million in fiscal 2021 compared to US$ 909.1 million in Q4 FY2020. 

Fairfax Financial Holdings (TSX: FFH) is turning heads on the stock markets after announcing its Q4 FY2021 results on Thursday, February 10.

With Prem Wasta as its chairperson and CEO, the Toronto-headquartered financial company provides property and casualty insurance, reinsurance, and other investment management solutions.

Let us look at why Fairfax is drawing investor attention and what its financial earnings look like in the latest quarter.

Fairfax Financial (TSX: FFH) Q4 FY2021 financial results

The insurance company saw its net premium written stand at US$ 4.85 billion in Q4 FY2021, up from US$ 3.72 billion a year ago.

Fairfax’s pre-tax earnings declined to US$ 1.14 billion in the latest quarter, down from US$ 1.23 billion in Q4 FY2020. 

However, the insurance provider managed to see notable growth in net earnings, which were US$ 931.3 million in its fourth quarter of fiscal 2021, compared to US$ 909.1 million in Q4 FY2020. 

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The financial service company is set to dole out an annual dividend of US$ 10 per share to its shareholders.

Fairfax (TSX: FFH) Q4 FY2021 results

 Image source: © 2022 Kalkine Media®      

Data source: Fairfax Financial Holdings Limited

Fairfax Financial’s recent stock performance

Stocks of Fairfax Financial gained by over 31 per cent in the last one year.

The insurance stock closed at C$ 652.21 apiece on Thursday.

Fairfax has a return on equity (ROE) of 25.52 per cent and holds a market capitalization of $17 billion at the time of writing.

Bottomline

Fairfax Financial has said that its book value increased by 34.2 per cent in 2021 to US$ 630.6 per share. The company also added that it ended 2021 with a “strong financial position”, with debt-to-capital reducing to 24.1 per cent and cash and investments standing at US$ 1.5 billion.

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