The Federal Agricultural Mortgage Corporation (Farmer Mac) 5.7% Non-Cumulative Preferred Stock Series D is a type of preferred stock issued by the company. As a preferred stock, it represents a type of ownership in the company that is senior to common stock but subordinate to debt in terms of payment priority.
The Series D preferred stock is a non-cumulative type, which means that any missed dividend payments are not accrued and must be declared in order to be paid. The stock has a fixed dividend rate of 5.7% per year, paid quarterly, and a par value of $25 per share.
Investors in the Farmer Mac Series D preferred stock are entitled to receive their dividends before any dividends are paid to common stockholders. The preferred stock also has a liquidation preference, meaning that in the event of the company's liquidation, preferred stockholders would have a higher claim to the company's assets than common stockholders.
The Series D preferred stock is considered a relatively safe investment, as Farmer Mac is a government-sponsored enterprise with a strong financial position and a solid track record of performance. The company has a high credit rating, which further supports the safety and stability of the preferred stock.
However, like all investments, the Series D preferred stock does carry some risks. The value of the stock may fluctuate based on market conditions, and there is always the possibility that the company may be unable to meet its financial obligations, including the payment of dividends on the preferred stock.
The Federal Agricultural Mortgage Corporation (Farmer Mac) 5.7% Non-Cumulative Preferred Stock Series D is a type of preferred stock that represents ownership in the company and provides investors with a fixed dividend rate and a liquidation preference. While considered a relatively safe investment, the preferred stock does carry some risks and should be evaluated carefully by investors. As always, it is important for investors to conduct their own research and consult with a financial advisor before making any investment decisions.