A profitable Freddie Mac to boost dividend payments above aid (Washington Business Journal)

Washington Business Journal
(2/27/2014 12:53 PM, Jeff Clabaugh)

Freddie Mac follows Fannie Mae in reporting robust quarterly and full-year profits, and like its counterpart, will pay additional dividends to the U.S. Treasury which will raise its dividend payments above the amount of aid it received.

Freddie Mac had fourth quarter net income of $8.6 billion and full-year earnings of $48.7 billion.

"The level of earnings we have experienced in recent periods is not sustainable over the long term," Freddie Mac said, echoing a similar statement from Fannie Mae last week.

Freddie Mac will make a $10.4 billion dividend payment on the stake taxpayers hold in the company, bringing its total dividend payments to $81.8 billion since 2009, more than the $71 billion in aid it received.

Combined, Fannie (OTC: FNMA) and Freddie (OTC: FMCC) have dished out $203 billion in dividend payments to the Treasury. Those payments do not reduce the stake in the two companies taxpayers still hold in the form of preferred shares.