Replies to post #12895 on Fannie Mae Preferred S (FNMAS)

[rosen62]

the juices are flowing

lol for sure!

Your black and white interpretation is correct. But my esoteric one has always been *not to stop* at RV:

1. You get the $25 or $50 in any dividends restoration scheme.
2. But just as soon, you start getting 8.25% (S) on that capital every year.
3. If reinvested, it compounds forever (or until shares are redeemed).

So speaking of a cap is immaterial when focusing on net returns. Your original money keeps growing beyond the $25/$50 mark. That's not all you get! Commons could work like this too. But in Jrs. *this* was the bet. With an end price set in stone and an already established yield.

And yes, the cold water bucket would be calling them back. End of the line, batman! (My 6 year old son says that).

Hopefully a recap. may happen soon and the tide lifts all boats.