Freddie Mac, 6.42% Non-Cumulative Perpetual Preferred Stock (FMCCS): Still the best return for Freddie prefs...

Freddie Mac, 6.42% Non-Cumulative Perpetual Preferred Stock (FMCCS)

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radiumsoup

Re: None

Wednesday, 09/19/2012 2:56:04 PM

Wednesday, September 19, 2012 2:56:04 PM

Still the best return for Freddie prefs in the event of a dividend restart based on current interest rates, and it ain't too shabby in the event of a redemption:

At 1.05, with a $3.21 yearly dividend that's a 306% YEARLY return. It's also a 4,762% return (that's 47.6x, or a "46-bagger" for you particular with your parlance) in the event of a redemption at $50 face value. Only FMCCN, FMCCL, and FMCCI do slightly better (up to 5,500%) at redemption at today's prices, but they mostly have no dividend to speak of.

I have a social disorder (although it's not quite full blown Asperger's), and can come across differently than intended...if you're offended by something I've said, I probably didn't mean it with such animosity - please take it with a grain of salt. :)