Fannie Mae 2008 Annual Report Download - page 81

PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Our common stock is publicly traded on the New York and Chicago stock exchanges and is identified by the
ticker symbol “FNM.” The transfer agent and registrar for our common stock is Computershare,
P.O. Box 43078, Providence, Rhode Island 02940.
Common Stock Data
The following table shows, for the periods indicated, the high and low sales prices per share of our common
stock in the consolidated transaction reporting system as reported in the Bloomberg Financial Markets service,
as well as the dividends per share declared in each period.
Quarter High Low Dividend
2007
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60.44 $51.88 $0.40
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.94 53.30 0.50
Third quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.57 56.19 0.50
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.60 26.38 0.50
2008
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40.20 $18.25 $0.35
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.31 19.23 0.35
Third quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.96 0.35 0.05
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.83 0.30 —
Dividends
The table above under “Common Stock Data” presents the dividends we declared on our common stock from
the first quarter of 2007 through and including the fourth quarter of 2008. In January 2008, the Board of
Directors reduced the common stock dividend to $0.35 per share, beginning with the first quarter of 2008. In
August 2008, the Board of Directors further reduced the common stock dividend to $0.05 per share for the
third quarter of 2008.
The conservator announced on September 7, 2008 that we would not pay any dividends on the common stock
or on any series of outstanding preferred stock. In addition, the senior preferred stock purchase agreement
prohibits us from declaring or paying any dividends on Fannie Mae equity securities (other than the senior
preferred stock) without the prior written consent of Treasury. We were permitted to pay previously declared
but unpaid dividends on our outstanding preferred stock for the third quarter.
An initial cash dividend of approximately $31 million was declared by the conservator and paid on
December 31, 2008 to Treasury as holder of the senior preferred stock, for the period from but not including
September 8, 2008 through and including December 31, 2008. If at any time we fail to pay cash dividends in
a timely manner, then immediately following such failure and for all dividend periods thereafter until the
dividend period following the date on which we have paid in cash full cumulative dividends (including any
unpaid dividends added to the liquidation preference), the dividend rate will increase from the annual rate of
10% per year on the then-current liquidation preference of the senior preferred stock to 12% per year.
Dividends on the senior preferred stock that are not paid in cash for any dividend period will accrue and be
added to the liquidation preference of the senior preferred stock. See “Part I—Item 1—Business—
Conservatorship, Treasury Agreements, Our Charter and Regulation of Our Activities—Treasury Agreements,”
“Item 7—MD&A—Liquidity and Capital Management—Capital Management—Capital Activity,” and “Notes
to Consolidated Financial Statements—Note 17, Stockholders’ Equity (Deficit)” for information on restrictions
on our ability to pay dividends.
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