Federal Agricultural Mortgage Corporation (NYSE:AGM) Plans $1.60 Quarterly Dividend

Key Points

• Federal Agricultural Mortgage declared a quarterly dividend of $1.60 per share, payable September 30 to shareholders of record on September 15. The payment represents a $6.40 annualized dividend and a 2.7% yield.
• The company has increased its dividend for 14 consecutive years, with a 33.2% payout ratio. Analysts expect earnings to cover the dividend comfortably, projecting a future payout ratio of 27.6%.
• Federal Agricultural Mortgage recently beat quarterly earnings expectations, reporting $5.40 EPS versus the $4.87 consensus and revenue of $125.01 million against estimates of $113.51 million.

Federal Agricultural Mortgage Corporation (NYSE:AGM - Get Free Report) declared a quarterly dividend on Wednesday, August 12th. Stockholders of record on Tuesday, September 15th will be paid a dividend of 1.60 per share by the credit services provider on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, September 15th.

Federal Agricultural Mortgage has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 14 consecutive years. Federal Agricultural Mortgage has a payout ratio of 33.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Federal Agricultural Mortgage to earn $23.17 per share next year, which means the company should continue to be able to cover its $6.40 annual dividend with an expected future payout ratio of 27.6%.

Federal Agricultural Mortgage Price Performance

Shares of AGM stock opened at $238.34 on Thursday. The business has a fifty day simple moving average of $203.30 and a 200 day simple moving average of $178.83. The company has a market cap of $2.59 billion, a P/E ratio of 13.02, a P/E/G ratio of 0.87 and a beta of 0.98. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 1.82. Federal Agricultural Mortgage has a twelve month low of $136.57 and a twelve month high of $248.29.

Federal Agricultural Mortgage (NYSE:AGM - Get Free Report) last released its earnings results on Thursday, July 30th. The credit services provider reported $5.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.87 by $0.53. The firm had revenue of $125.01 million for the quarter, compared to analysts' expectations of $113.51 million. Federal Agricultural Mortgage had a return on equity of 18.90% and a net margin of 29.98%. On average, sell-side analysts forecast that Federal Agricultural Mortgage will post 20.72 EPS for the current fiscal year.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation NYSE: AGM, commonly known as Farmer Mac, is a government-sponsored enterprise chartered in 1988 under the Agricultural Credit Act of 1987. Headquartered in Washington, DC, Farmer Mac was established to enhance the availability of mortgage credit for the agricultural and rural utility sectors. The corporation operates as a secondary market for agricultural real estate and rural infrastructure loans, providing lenders with liquidity and risk management solutions.

The company's principal business activities include purchasing and securitizing long-term fixed-rate agricultural mortgage loans and rural utilities loans originated by approved lenders.

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