Tuesday, November 27, 2007

Freddie Mac Cuts Dividend In Half

The mortgage fiasco hit Freddie Mac (FRE) investors today. The company announced it would pay a fourth quarter dividend of 25 cents per share versus 50 cents per share in the same quarter last year. This 50% cut jeopardizes FRE's listing on Standard & Poor's list of company's' that have increased annual dividends for at least 10 straight years. In addition to the dividend cut, the company announced plans to sell $6 billion of preferred stock in anticipation of more loan losses.

(click on chart for larger image)

Freddie Mac stock chart November 27, 2007


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