Fannie Mae-No Politics (FNMA)

[chessmaster315]

Nope. You dont have to be a lawyer to understand the meaning of "non cumulative preferred".

It means the preferreds ONLY have preference to dividends in the current quarter..not 12 years ago.

Dividends are paid by the BOARD OF DIRECTORS...who answer to common shareholders. Remember, preferreds are "non voting" shares, while each common share has ONE vote to cast for a board member of their choice..who represents the interests of the common shareholders.

Preferrds have no say about their dividend...they gave up their voting rights and all past dividends by buying the preferreds.

Common shareholders, however, can/have received "special dividends".
This happened in 2006, when the BOD determined there were additional dividends, and paid them as a special dividend to common shareholders. Preferred shareholders got a "zero" special dividend..they got what was contractually owed to them, only.