Fairfax Financial Holdings Ltd. today declared an annual dividend of US$5 per share, up from US$2.75 per share last year.

The dividend, payable February 11 to shareholders of record on January 14, represents a yield of 1.7% at the insurance holding company’s year-end stock price of $287 (Canadian), which was up 24% on the year.

Fairfax also noted that indenture terms have been met allowing holders of its 5% convertible senior debentures due 2023 to exchange these notes for subordinate voting stock during the first quarter at a conversion price of US$212.51 per share.

Toronto-based Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.