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Article: Fannie Mae Halves First-Quarter Dividend; Move Designed to Increase Capital
- Article from:
- The Washington Post
- Article date:
- January 19, 2005
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Fannie Mae yesterday cut the dividend on its common stock in half
to help meet regulators' requirement that it bolster its cash
reserves.
It was the first time since 1981 that the government-chartered
mortgage-funding company cut its common stock dividend, company
spokeswoman Janis Smith said. The reduction brought the dividend to
26 cents a share for the first quarter of 2005, lower than it has
been since the end of 1998, Smith said.
Based on the number of shares outstanding Fannie Mae reported in
mid-2004, the dividend cut would save the company $251.7 million.
The action was another blow to investors who have seen billions of
dollars of stock value evaporate since September, when ...