Federal Agricultural Mortgage (AGM) DIvidends Date & History

Key Takeaways

• Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, pays a quarterly dividend of $1.60 per share, resulting in an annualized dividend of $6.40 and a forward dividend yield of approximately 3.2%.
• The company has achieved 15 consecutive years of dividend increases, most recently raising the quarterly payout by 7% in February 2026.
• The payout ratio stands at roughly 36%, based on trailing twelve-month earnings per share (EPS), signaling a conservative and well-covered dividend policy.
• As a government-sponsored enterprise (GSE), Farmer Mac benefits from structural funding advantages that support long-term earnings and dividend sustainability.
• The five-year dividend compound annual growth rate (CAGR) is approximately 13%, making AGM a compelling candidate for dividend growth investors.
• Investors seeking exposure to agricultural finance with an above-average yield relative to the broader financial sector may find AGM's profile noteworthy.

Dividend Overview

AGM, the Class C non-voting common stock of the Federal Agricultural Mortgage Corporation (Farmer Mac), offers a quarterly cash dividend of $1.60 per share, translating to an annualized payout of $6.40. At recent price levels, this equates to a dividend yield of roughly 3.2%, which is meaningfully above the average yield in the broader financial services sector. Dividends are paid quarterly, with recent ex-dividend dates following a consistent mid-month schedule — the most recent ex-dividend date was June 15, 2026, with a payment date of June 30, 2026.

Farmer Mac is neither a pure high-yield play nor a modest-income stock. It occupies a middle ground: an above-average-yielding financial GSE with a strong track record of annual dividend increases. The company also issues dividends on its Class A voting common stock (AGM.A) and multiple series of preferred stock, reflecting a broad commitment to returning capital to shareholders. Farmer Mac's mission — providing a secondary market for agricultural and rural infrastructure loans — underpins a steady revenue stream that has supported consistent dividend growth for over a decade.

Dividend History and Growth

Farmer Mac's dividend history reveals a remarkable transformation. In 2010, the quarterly dividend was just $0.05 per share. By early 2025, it had grown to $1.50, and in February 2026 the board approved a 7% increase to $1.60 — marking the company's fifteenth consecutive annual dividend increase. Over the past decade, annual dividends have risen from $0.64 per share (2015) to $6.40 on a forward annualized basis, representing an extraordinary compound growth trajectory.

The pace of growth has been particularly strong in recent years. Between 2020 and 2025, the annual dividend per share rose from $3.20 to $6.00 — nearly doubling in five years. The five-year dividend CAGR of approximately 13% places Farmer Mac among the faster-growing dividend payers in the financial sector. This consistent growth, combined with the absence of any dividend cuts during this period, underscores management's confidence in the durability of the company's earnings and its commitment to shareholder returns.

Dividend Sustainability and Payout Ratio

The sustainability of Farmer Mac's dividend appears robust. The company reported diluted EPS of approximately $16.62 for the full year 2025. Against the annualized dividend of $6.40 per share, the payout ratio stands at roughly 36%, well within conservative territory and leaving ample room for future increases even if earnings growth moderates. In 2024, free cash flow reached $607 million, easily covering total dividend payments of approximately $89 million.

It is worth noting that Farmer Mac's operating cash flow can be volatile on a quarterly basis due to the nature of its GSE business model, which involves substantial debt issuance and loan portfolio activity. In 2025, free cash flow declined to approximately $80 million as the company deployed significant capital into loan acquisitions. However, the company's Tier 1 capital ratio of approximately 13.6% — well above regulatory requirements — and its access to low-cost funding through the agency debt market provide significant financial stability. As a GSE regulated by the Farm Credit Administration (FCA), Farmer Mac operates under stringent risk management and liquidity guidelines, further reinforcing dividend reliability.

Dividend Compared to Industry Peers

Within the mortgage finance and credit services industry, Farmer Mac's dividend profile stands apart. Many comparable financial institutions, including larger mortgage-related GSEs such as Fannie Mae (FNMA) and Freddie Mac (FMCC), do not pay common stock dividends at all. Among those that do, yields in the specialty finance and mortgage sector often range between 1.0% and 2.5%. AGM's yield of approximately 3.2% places it in the upper tier of its peer group.

The company's 15-year dividend growth streak is also a rarity in mortgage finance. While large diversified financial institutions may offer competitive yields, few combine an above-average yield with a double-digit dividend growth rate and a low-30s payout ratio. This combination positions Farmer Mac favorably for income-oriented investors seeking both current income and growth potential within the financial sector.

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Is This Stock Attractive for Dividend Investors?

Farmer Mac may appeal most to dividend growth investors and long-term income-oriented investors seeking a combination of current yield and consistent payout increases. With a 15-year streak of annual dividend hikes, a five-year CAGR of approximately 13%, and a conservative payout ratio around 36%, AGM offers a rare blend of income reliability and growth within the financial sector.

The stock could also suit investors looking for exposure to the agricultural and rural infrastructure segments of the U.S. economy through a GSE-backed vehicle. The implicit government support associated with Farmer Mac's charter provides a layer of stability that purely private-sector mortgage lenders do not enjoy. However, investors should be aware that Farmer Mac's operating cash flow can fluctuate significantly from quarter to quarter, reflecting the nature of its balance-sheet-intensive business model. The company also carries substantial leverage, which is inherent to its role as a secondary market intermediary. As always, individual financial circumstances and risk tolerance should guide any investment decision.

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