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AGM Preferred Shares: Near 7% Yield And Discount To Par
2026-05-22 · via All Articles on Seeking Alpha

Summary

  • Federal Agricultural Mortgage preferred shares offer ~6.9% yield and trade at a meaningful discount to par, enhancing total return potential.
  • AGM's preferreds benefit from strong dividend coverage, operate under a regulatory framework, and have a 14-year common dividend growth track record with over ~21 years of consecutive payouts, supporting stability.
  • Series G preferreds present the largest discount to par and highest upside potential among AGM's outstanding series, making them the most attractive for allocation.
  • AGM.PR.G, AGM.PR.F, AGM.PR.D, and AGM.PR.E are rated a buy due to their strong yield, discount to par, and favourable call risk profile.
  • AGM preferreds are exposed to interest rate sensitivity and systemic financial distress; upside is capped, but downside remains if rates rise or AGM's credit profile deteriorates, warranting prudent position sizing.
Legal U.S. Tariffs and Economics

Douglas Rissing/iStock via Getty Images

The preferred shares of Federal Agricultural Mortgage Corporation are a recent addition to my watchlist for fixed-income securities. These preferred shares provide a strong yield close to ~7%, payable on a quarterly basis. The four listed securities are trading

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