Federal Agricultural Mortgage Corporation (AGM)
Widows And Orphans Income Investments Yielding 6%
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Federal Agricultural Mortgage Corp.: I'm Buying The 6.4% Yielding Preferred Stock
Federal Agricultural Mortgage (Farmer Mac) maintains a conservative balance sheet, ensuring limited loan loss provisions and strong preferred dividend coverage despite rising interest rates. Preferred shares, particularly Series F, offer a 6.4% yield, which remains attractive given the potential for capital gains if interest rates decline. The bank's low payout ratio and substantial asset coverage make the preferred shares a relatively safe investment, even with a high preferred equity ratio.
Farmer Mac: All Models Point To Undervaluation
Despite negative EPS revisions and near-term declines in momentum, Farmer Mac has maintained impressive growth and profitability metrics. My fair value estimates suggest the stock is undervalued by 20%-40%, with potential upside driven by favorable macroeconomic trends and government policies. A solid dividend track record with a double-digit CAGR over the past five years makes it a compelling option for dividend growth investors.
2 Preferred Stocks To Buy And Hold Forever
6-7% yields, QDI, and strong coverage, I plan to own these picks forever. Today's investors are mostly traders due to their extremely short holding periods. I collect income from low-stress securities to make my portfolio management easier.
Federal Agricultural Mortgage: Stable Earnings Stream With Above-Average Growth Prospects
Federal Agricultural Mortgage stock has increased by 117% since 2019, with earnings up 90%. The company has demonstrated outstanding performance in managing credit risk, interest rate risk, and leverage risk. Farmer Mac has a strong competitive advantage as a government-sponsored enterprise, with a moat that provides lower debt costs than even the best peers.
