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 · All $25 par value · Dividends suspended since 2008
| Ticker | Series | Coupon | Rate Type | Annual Div (at par) | Cumulative |
|---|---|---|---|---|---|
| FNMAS | S | 8.25% | Fixed | $2.0625 | Yes |
| FNMAT | T | 8.25% | Fixed | $2.0625 | Yes |
| FNMAP | P | 6.30% | Fixed | $1.575 | Yes |
| FNMAH | H | Variable | Variable | Variable | Yes |
| FNMAI | I | Variable | Variable | Variable | Yes |
| FNMAJ | J | Variable | Variable | Variable | Yes |
| FNMAK | K | Variable | Variable | Variable | Yes |
| FNMAL | L | Variable | Variable | Variable | Yes |
| FNMAM | M | Variable | Variable | Variable | Yes |
| FNMAN | N | Variable | Variable | Variable | Yes |
| FNMAO | O | Variable | Variable | Variable | Yes |
| FNMFN | FN | Variable | Variable | Variable | Yes |
| FNMFO | FO | Variable | Variable | Variable | Yes |
Freddie Mac (FMCC) Preferred Series
20 series · All $25 par value · Dividends suspended since 2008
| Ticker | Series | Coupon | Rate Type | Annual Div (at par) | Cumulative |
|---|---|---|---|---|---|
| FMCCG | G | Variable | Variable | Variable | Yes |
| FMCCH | H | Variable | Variable | Variable | Yes |
| FMCCI | I | Variable | Variable | Variable | Yes |
| FMCCJ | J | 4.48% | Fixed | $1.12 | Yes |
| FMCCK | K | Variable | Variable | Variable | Yes |
| FMCCL | L | Variable | Variable | Variable | Yes |
| FMCCM | M | Variable | Variable | Variable | Yes |
| FMCCN | N | Variable | Variable | Variable | Yes |
| FMCCO | O | Variable | Variable | Variable | Yes |
| FMCCP | P | Variable | Variable | Variable | Yes |
| FMCCS | S | Variable | Variable | Variable | Yes |
| FMCCT | T | Variable | Variable | Variable | Yes |
| FMCKI | KI | Variable | Variable | Variable | Yes |
| FMCKJ | KJ | 8.375% | Fixed | $2.09375 | Yes |
| FMCKK | KK | Variable | Variable | Variable | Yes |
| FMCKL | KL | Variable | Variable | Variable | Yes |
| FMCKM | KM | Variable | Variable | Variable | Yes |
| FMCKN | KN | Variable | Variable | Variable | Yes |
| FMCKO | KO | Variable | Variable | Variable | Yes |
| FMCKP | KP | Variable | Variable | Variable | Yes |
Note: "Variable" rate series are tied to a reference rate (originally LIBOR, transitioning to SOFR or equivalent). The actual coupon resets periodically based on the benchmark plus a spread defined in each series' prospectus. Fixed-rate series pay a constant coupon regardless of market conditions. All series have a $25 par (liquidation preference) value.
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. A new FHFA director sympathetic to privatization would accelerate this.
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?
This is the single most important structural question for GSE preferred shareholders. The distinction between cumulative and non-cumulative preferred stock determines whether you have a legal claim to 17+ years of missed dividends.
Cumulative
Every missed dividend accrues as an obligation. The company must pay all accumulated arrearages before paying any common stock dividends. This creates a massive deferred liability.
Example: FNMAS (8.25% coupon)
$2.0625/yr x 17 years = ~$35/share owed
On a stock with $25 par value
All FNMA and FMCC junior preferred are cumulative
Non-Cumulative
Missed dividends are gone forever. The issuer has zero obligation to make up skipped payments. If dividends are suspended for 17 years, you get nothing for those 17 years — period.
Example: Typical bank preferred
Missed years = $0 owed. No recovery.
Most bank preferreds are non-cumulative
Not applicable to FNMA/FMCC junior preferred
The Practical Reality
While all GSE junior preferred shares are legally cumulative, the accumulated dividend obligation is enormous — potentially exceeding par value for some series. In a negotiated conservatorship exit, there is a realistic scenario where accumulated dividends are partially or fully addressed through a combination of cash payments, stock conversions, or negotiated settlements. The key for investors is that cumulative preferred holders have a seat at the table — they cannot be bypassed in favor of common shareholders without settling the arrearages first.
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: 8.25% · Annual dividend: $2.0625 per share
Buy At
$11.00
Yield Calculation
$2.0625 / $11.00
Pro Forma Yield
18.75%
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: 8.375% · Annual dividend: $2.0938 per share
Buy At
$10.00
Yield Calculation
$2.0938 / $10.00
Pro Forma Yield
20.94%
Coupon: 4.48% · Annual dividend: $1.1200 per share
Buy At
$5.00
Yield Calculation
$1.1200 / $5.00
Pro Forma Yield
22.40%
Coupon: 6.30% · Annual dividend: $1.5750 per share
Buy At
$8.00
Yield Calculation
$1.5750 / $8.00
Pro Forma Yield
19.69%
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 accumulated dividends are paid as a lump sum in a restructuring, tax classification could be complex. Consult a tax professional.
Accumulated Dividends & Tax Basis
If you purchased GSE preferred shares after dividends were suspended, a portion of the market price may reflect the embedded value of accumulated unpaid dividends. When those accumulated dividends are eventually paid (or accounted for in a restructuring), the tax treatment of the "catch-up" payment could differ from ongoing dividend payments.
Key considerations: your cost basis in the shares, whether accumulated dividends are paid in 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 8.25% fixed-rate coupon ($2.0625 per share annually at $25 par) remains suspended. Because FNMAS is a cumulative preferred, all unpaid dividends continue to accrue as an obligation. 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 2026, the Trump administration has signaled intent to recapitalize and release the GSEs, but no firm timeline has been set. Track real-time developments at glenbradford.com/gse-catalyst-tracker.
Are Fannie Mae preferred dividends cumulative?
Yes. All 13 series of Fannie Mae junior preferred stock (Series S, T, P, H, I, J, K, L, M, N, O, FN, and FO) are cumulative preferred shares. This means every unpaid quarterly dividend accrues as a liability. When dividends eventually resume, the company must pay all accumulated arrearages before paying any dividends to common shareholders. Since dividends were suspended in September 2008, that represents over 17 years of accrued but unpaid dividends — a significant obligation.
What is the FNMAS dividend yield?
FNMAS has a stated coupon rate of 8.25% on its $25 par value, which translates to $2.0625 per share per year. 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 full coupon rate — depends on your purchase price. For example, at a market price of $11, the pro forma yield would be $2.0625 / $11 = 18.75%. 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?
FMCCJ (Freddie Mac Series J Preferred) has a fixed coupon rate of 4.48% on its $25 par value, which equals $1.12 per share per year ($0.28 per quarter). Like all GSE preferred shares, FMCCJ has not paid any dividends since 2008 due to the conservatorship. FMCCJ is cumulative, so all missed payments accrue. At typical recent trading prices, the pro forma yield if dividends resume is significantly higher than the stated coupon.
What is the difference between cumulative and non-cumulative preferred dividends?
Cumulative preferred stock accrues all missed dividend payments as a debt obligation. The company must pay all accumulated dividends before paying common shareholders anything. Non-cumulative preferred stock has no such protection — missed dividends are lost forever. All Fannie Mae and Freddie Mac junior preferred shares are cumulative, which is a meaningful advantage. However, it is worth noting that in a restructuring scenario, the accumulated dividends could theoretically be negotiated or written down as part of a broader settlement, though this would be unprecedented for a going-concern entity.
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