Fairfax Announces Quarterly Dividend on Series G, H, I, J and K Preferred Shares and Quarterly Dividend Rate for Series J Preferred Shares

Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) has announced its quarterly dividends for several series of its preferred shares, effective September 2025. The declared dividends are as follows: Series G will pay C$0.185125, Series H will pay C$0.32792, Series I will distribute C$0.207938, Series J will provide C$0.34620, and Series K will offer C$0.315313. The payment dates for these dividends are set for September 29 and September 30, 2025, with the corresponding record dates being September 15, 2025, for Series G and September 29, 2025, for the other series. It is important to note that applicable Canadian withholding tax will apply to dividends paid to non-residents of Canada.

Additionally, Fairfax has calculated the quarterly dividend rate for its floating rate Series J preferred shares for the period from September 30, 2025, to December 30, 2025. The dividend rate for this series is set at 1.38907%, with an annualized rate of 5.51099%. The dividend per share for this period, if declared, will amount to C$0.34727.

Fairfax Financial is primarily engaged in property and casualty insurance, reinsurance, and associated investment management through its subsidiaries. Notably, the company plans to redeem all outstanding Cumulative 5-Year Rate Reset Preferred Shares, Series G, and all outstanding Cumulative Floating Rate Preferred Shares, Series H, on September 30, 2025. This announcement reflects Fairfax's ongoing commitment to maintaining an active dividend policy while managing its preferred share structure effectively. For further inquiries, stakeholders can contact John Varnell, Vice President, Corporate Development at Fairfax.

Fairfax Financial Holdings Limited’s recent announcement regarding its quarterly dividends on various preferred shares is significant for investors focused on income generation. With dividends declared for Series G, H, I, J, and K, Fairfax continues to demonstrate its commitment to returning value to shareholders amidst a potentially volatile economic backdrop.

Investors should note the declared dividends: Series G at C$0.185125, Series H at C$0.32792, Series I at C$0.207938, Series J at C$0.34620, and Series K at C$0.315313. This information provides insight into the income potential these preferred shares offer. The Series J shares are particularly noteworthy, with a quarterly dividend rate and an annualized yield of approximately 5.51%, indicating an attractive fixed-income option for yield-seeking investors.

The upcoming decision to redeem all outstanding Series G and Series H shares may signify Fairfax's intention to streamline its capital structure and possibly take advantage of lower interest rates for new capital. This move could improve liquidity and allow the company to reinvest in higher-yielding opportunities or pursue growth initiatives. However, investors holding these specific series need to consider reinvestment risks associated with the redemption.

Given the tax implications for non-residents, it's essential for international investors to account for Canadian withholding tax when calculating net returns. Overall, while the current dividend announcement reflects Fairfax’s robust financial health and commitment to shareholders, investors should monitor any changes in market conditions or company fundamentals that may affect the stability and sustainability of these dividends moving forward. The planned redemption of certain shares could also impact the preferred shares market overall, presenting both opportunities and risks that diligent investors must assess.