Current Dividend Status
No Dividends Have Been Paid Since September 2008
When FHFA placed Fannie Mae and Freddie Mac into conservatorship on September 6, 2008, all preferred stock dividends were immediately suspended. In the 17+ years since, not a single preferred dividend payment has been made to any series of junior preferred shareholders.
Instead, the Treasury Department's Senior Preferred Stock Purchase Agreements (PSPAs) have taken priority. Under the original "net worth sweep" amendment of 2012, virtually all profits were swept to Treasury — over $300 billion in total — leaving nothing for preferred or common shareholders.
The net worth sweep was modified in 2019 to allow capital retention, but dividends remain suspended. The GSEs are now accumulating capital toward regulatory requirements, but preferred dividend payments require either conservatorship exit or explicit Treasury/FHFA authorization.
$0.00
Dividends paid since 2008
17+
Years of suspended payments
33
Total preferred series (FNMA + FMCC)
Complete Preferred Dividend Table
Every series of Fannie Mae and Freddie Mac junior preferred stock, with coupon rates, rate types, and annual dividend amounts at par value. Variable-rate series are tied to reference rates (historically LIBOR, now SOFR-based) and their actual coupon floats with the benchmark.
Fannie Mae (FNMA) Preferred Series
13 series · Par values vary by series ($25 / $50) · Dividends suspended since 2008
| Ticker | Series | Par | Coupon | Rate Type | Annual Div (at par) |
|---|---|---|---|---|---|
| FNMAS | S | $25 | 8.15% | Variable | Variable |
| FNMAT | T | $25 | 8.25% | Fixed | $2.0625 |
| FNMAP | F | $50 | 3.83% | Variable | Variable |
| FNMAH | P | $25 | 4.67% | Variable | Variable |
| FNMAI | Q | $25 | 6.75% | Fixed | $1.6875 |
| FNMAJ | R | $25 | 7.63% | Fixed | $1.9075 |
| FNMAK | N | $50 | 5.50% | Fixed | $2.75 |
| FNMAL | M | $50 | 4.75% | Fixed | $2.375 |
| FNMAM | H | $50 | 5.81% | Fixed | $2.905 |
| FNMAN | L | $50 | 5.13% | Fixed | $2.565 |
| FNMAO | G | $50 | 3.81% | Variable | Variable |
| FNMFN | O | $50 | 7.00% | Variable | Variable |
| FNMFO | Conv. (2004-1) | $100,000 | 5.38% | Fixed | $5,380 |
Freddie Mac (FMCC) Preferred Series
20 series · Par values vary by series ($25 / $50) · Dividends suspended since 2008
| Ticker | Series | Par | Coupon | Rate Type | Annual Div (at par) |
|---|---|---|---|---|---|
| FMCCG | G | $50 | 3.57% | Variable | Variable |
| FMCCH | H | $50 | 5.10% | Fixed | $2.55 |
| FMCCI | B | $50 | 3.57% | Variable | Variable |
| FMCCJ | — | $50 | 4.19% | Variable | Variable |
| FMCCK | K | $50 | 5.79% | Fixed | $2.895 |
| FMCCL | L | $50 | 4.15% | Variable | Variable |
| FMCCM | M | $50 | 4.09% | Variable | Variable |
| FMCCN | N | $50 | 4.18% | Variable | Variable |
| FMCCO | O | $50 | 5.81% | Fixed | $2.905 |
| FMCCP | P | $50 | 6.00% | Fixed | $3.00 |
| FMCCS | S | $50 | 4.42% | Variable | Variable |
| FMCCT | T | $50 | 6.42% | Fixed | $3.21 |
| FMCKI | Y | $25 | 6.55% | Fixed | $1.6375 |
| FMCKJ | Z | $25 | 8.08% | Variable | Variable |
| FMCKK | F | $50 | 5.00% | Fixed | $2.50 |
| FMCKL | X | $25 | 6.02% | Fixed | $1.505 |
| FMCKM | V | $25 | 5.57% | Fixed | $1.3925 |
| FMCKN | W | $25 | 5.66% | Fixed | $1.415 |
| FMCKO | U | $25 | 5.90% | Fixed | $1.475 |
| FMCKP | R | $50 | 5.70% | Fixed | $2.85 |
Note: "Variable" rate series are tied to a reference rate (originally LIBOR, transitioning to SOFR or equivalent); the rate shown is a recent reset, and the actual coupon floats with the benchmark plus a spread defined in each series' prospectus. Fixed-rate series pay a constant coupon. Par (liquidation preference) values vary by series — most legacy series issued 1996–2005 are $50 par, the 2006–2008 vintage is mostly $25, and FNMFO is a $100,000-face convertible. The OTC ticker's last letter is NOT the series letter (FNMAH is Series P; FMCKJ is Series Z) — see the full ticker map. FMCCJ's series designation is unconfirmed in our tracking, so it is shown as "—" rather than guessed.
When Could Dividends Resume?
Preferred dividends are tied directly to conservatorship exit. There is no mechanism for the GSEs to pay preferred dividends while in conservatorship without explicit approval from FHFA (as conservator) and effectively Treasury (as senior preferred holder). Here is what needs to happen:
PSPA Amendment or Termination
The Senior Preferred Stock Purchase Agreements must be amended or terminated. Treasury's senior preferred currently has a liquidation preference exceeding $200B and receives a 10% dividend. Until the senior preferred is dealt with, junior preferred dividends are blocked.
Sufficient Capital Accumulation
FHFA's Enterprise Regulatory Capital Framework requires roughly $300B+ in combined capital. The GSEs have retained approximately $140B since the net worth sweep ended. They need to reach a level where regulators feel comfortable authorizing dividend payments.
FHFA Authorization
FHFA, as conservator, must formally authorize dividend payments on junior preferred stock. This likely happens as part of a broader consent order or conservatorship exit plan. FHFA Director Bill Pulte — who also chairs both boards — is publicly aligned with release; dividend authorization would likely arrive as part of the exit plan.
Conservatorship Exit
The ultimate catalyst. Once the GSEs exit conservatorship — whether through recap-and-release, receivership-to-new-entity, or legislation — preferred shareholders regain their contractual dividend rights. Administration action is the most likely path.
Glen's View: Administrative action is the most likely path to conservatorship exit. The current administration has signaled intent through executive orders and appointments. The question is not if but when and on what terms. Track every development on the GSE Catalyst Tracker.
What Happens to Unpaid Dividends?
Here is the uncomfortable truth, stated plainly: Fannie Mae and Freddie Mac junior preferred stock is non-cumulative. Dividends were turned off when conservatorship began in September 2008, and because the shares are non-cumulative, the 17+ years of skipped dividends are not owed to you. There is no arrearage claim. The investment thesis rests on the par liquidation preference and a recapitalization/release outcome (or a conversion/settlement) — not on collecting back dividends.
Non-Cumulative
Missed dividends are gone forever. The issuer has zero obligation to make up skipped payments. What survives suspension is the par liquidation preference and the right to dividends going forward once payments are reinstated.
Example: FNMAS, suspended since 2008
17+ skipped years = $0 owed
The $25 liquidation preference is what remains
This is how ALL FNMA and FMCC junior preferred work
Cumulative
Every missed dividend accrues as an obligation that must be paid before any common stock dividend. Some corporate preferreds work this way. The GSE junior preferreds do not.
If FNMAS were cumulative (it is not):
~$2/yr x 17 years = ~$35/share "owed"
This math circulates online — and it is wrong
Not applicable to FNMA/FMCC junior preferred
Common Misconception: "17 Years of Back Dividends Are Owed"
You will see arrearage math passed around in GSE forums — multiplying the annual coupon by 17+ years of suspension and calling the result an obligation. That calculation describes a cumulative preferred, and these are not cumulative preferreds. The certificates of designation for the GSE junior preferred series are explicitly non-cumulative: a skipped dividend never accrues, and no court or regulator treats those skipped payments as a liability of Fannie Mae or Freddie Mac. If someone's bull case for these securities depends on collecting back dividends, the case is built on a misreading of the prospectus.
So Why Own Them? The Practical Reality
The value case is the gap between the market price and the par liquidation preference — $25 or $50 per share depending on the series (and $100,000 for the FNMFO convertible). In a recapitalization and release, preferred holders could see dividends reinstated at the stated coupon, a conversion into common stock, a tender or exchange offer, or a negotiated settlement — outcomes anchored to par, not to back dividends. Shares that trade at a deep discount to par offer substantial upside if conservatorship resolves favorably, and that par-based recovery — not an arrearage claim — is the entire thesis.
Pro Forma Yield Analysis
If dividends resume at the full stated coupon rate, what would your yield on cost look like? These calculations assume you buy at the example price and receive the full annual dividend based on the par coupon rate. This is the core math driving the GSE preferred investment thesis.
Coupon: 8.15% (recent reset) · Annual dividend: $2.0375 per share
Buy At
$11.00
Yield Calculation
$2.0375 / $11.00
Pro Forma Yield
18.52%
Coupon: 8.25% · Annual dividend: $2.0625 per share
Buy At
$10.50
Yield Calculation
$2.0625 / $10.50
Pro Forma Yield
19.64%
Coupon: 8.08% (recent reset) · Annual dividend: $2.0200 per share
Buy At
$10.00
Yield Calculation
$2.0200 / $10.00
Pro Forma Yield
20.20%
Coupon: 6.42% · Annual dividend: $3.2100 per share
Buy At
$16.00
Yield Calculation
$3.2100 / $16.00
Pro Forma Yield
20.06%
Coupon: 5.81% · Annual dividend: $2.9050 per share
Buy At
$14.00
Yield Calculation
$2.9050 / $14.00
Pro Forma Yield
20.75%
Important: These are pro forma yields — they assume dividends resume at the full stated coupon rate. Actual outcomes depend on conservatorship resolution terms, which could include reduced coupon rates, conversion to new instruments, or partial payments. The prices shown are illustrative and will differ from current market prices. Always do your own research and check current quotes before investing.
Tax Treatment of GSE Preferred Dividends
When (and if) dividends resume, the tax treatment matters significantly for after-tax returns. Here is what you need to know:
Qualified Dividends
Taxed at the lower long-term capital gains rate (0%, 15%, or 20% depending on income). To qualify, you must hold the preferred stock for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date.
Fannie Mae and Freddie Mac preferred dividends have historically qualified for the lower rate when they were being paid pre-2008.
Non-Qualified (Ordinary)
Taxed at your ordinary income tax rate (up to 37%). This applies if holding period requirements are not met or if the IRS determines the payments do not qualify. Some restructuring scenarios could result in payments classified as return of capital or ordinary income.
If a conservatorship exit pays cash, exchanges shares, or converts preferred into common, tax classification could be complex. Consult a tax professional.
Restructuring Proceeds & Tax Basis
Because these shares are non-cumulative, there is no pool of accrued back dividends embedded in the price — the market price reflects a probability-weighted view of a par-based recovery. If a conservatorship exit delivers value through a conversion to common stock, an exchange or tender offer, or a negotiated settlement, the tax character of those proceeds (capital gain vs. dividend vs. return of capital) could differ meaningfully from ordinary quarterly dividend income.
Key considerations: your cost basis in the shares, whether value arrives as cash vs. stock, and the specific terms of any conservatorship exit agreement. This is an area where a tax advisor familiar with GSE securities is worth every penny.
Frequently Asked Questions
Does FNMAS pay a dividend?
No. FNMAS (Fannie Mae Series S Preferred) has not paid a dividend since September 2008, when the Federal Housing Finance Agency placed Fannie Mae into conservatorship. The Series S coupon — stated at 8.25% fixed-to-floating on a $25 par, with a recent reset rate around 8.15% — remains suspended. Because FNMAS, like all GSE junior preferred, is NON-cumulative, the skipped dividends do not accrue and are not owed. Dividends cannot resume until conservatorship ends or FHFA and Treasury agree to reinstate them.
When will Fannie Mae preferred dividends resume?
Preferred dividends can only resume when the conservatorship of Fannie Mae is resolved. This requires action from the Treasury Department, FHFA, and potentially Congress. Key catalysts include the Senior Preferred Stock Purchase Agreements (PSPAs) being amended, sufficient capital being built (currently ~$100B+ shortfall to regulatory minimums), and a formal exit plan. As of June 2026, Treasury Secretary Bessent, Commerce Secretary Lutnick, and FHFA Director Pulte are all publicly on record with near-term release timelines, though no formal date has been announced. Track real-time developments at glenbradford.com/gse-catalyst-tracker.
Are Fannie Mae preferred dividends cumulative?
No — and this is the most commonly repeated mistake about these securities. The actively quoted Fannie Mae junior preferred series (15 OTC tickers in our ticker map, from FNMAG through the $100,000-face convertible FNMFO) are non-cumulative preferred shares, and the same is true of the Freddie Mac junior preferred. A skipped dividend never accrues as a liability. Dividends have been suspended since September 2008, and none of those 17+ years of skipped payments are owed to shareholders. The investment case rests on the par liquidation preference ($25 or $50 per share depending on the series) and a recapitalization/release or conversion outcome — not on collecting back dividends.
What is the FNMAS dividend yield?
FNMAS carries a stated 8.25% fixed-to-floating coupon on its $25 par value; the floating leg's recent reset rate is around 8.15%, or roughly $2.04 per share per year at par. However, since dividends are currently suspended, the actual current yield is 0%. The pro forma yield — what you would earn IF dividends resume at the coupon rate — depends on your purchase price. For example, at a market price of $11 and the recent ~8.15% reset, the pro forma yield would be about $2.04 / $11 = 18.5%. This is why GSE preferred shares attract investors: the potential yield on cost is extraordinary if conservatorship ends favorably.
How much does FMCCJ pay in dividends?
Nothing currently — like all GSE preferred, FMCCJ has paid no dividends since the 2008 conservatorship. FMCCJ is a variable-rate Freddie Mac junior preferred with a $50 par value and a recent reset rate around 4.19% (roughly $2.10 per share per year at par). Note that its exact series designation is unconfirmed in our tracking — Freddie's OTC tickers do not encode the series letter, so do not assume it is 'Series J'; see our ticker map. FMCCJ is non-cumulative, so the missed payments since 2008 do not accrue and are not owed.
What is the difference between cumulative and non-cumulative preferred dividends?
Cumulative preferred stock accrues all missed dividend payments as an obligation — the company must pay the accumulated arrearages before paying common shareholders anything. Non-cumulative preferred stock has no such protection: missed dividends are lost forever. Fannie Mae and Freddie Mac junior preferred shares are NON-cumulative, so the 17+ years of suspended dividends are not owed and there is no arrearage claim. What survives is the par liquidation preference and the dividend rights going forward once payments are reinstated. That is why the GSE preferred thesis is about recapitalization, release, conversion, or settlement at or near par — not about back dividends.
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