Replies to post #372526 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

I thought dividends were paid with profit - not before calculation of profit

(if you are arguing CASH and CASH available for recap - then the cash outflow is key - but not earnings - I think)

[capitalismforever]

"Fannie Mae earnings have been inflated by approximately $3 B per year by government eliminating the payment of dividends that were historically delivered to shareholders."

So you think $3b is more than the taxation they've had to pay on earnings they don't receive plus the dividends to the government that will cease? You're right, not even a freshman business school major would make that mistake. 10x earnings is the historical average for the past 15+ years the company has been trading. It's what the market participants have unanimously agreed on, clearly.