What Are the Benefits of Fannie Mae Stock?


Quick Answer

Extraordinary returns as a result of stock price appreciation are predicted investor benefits of Fannie Mae stock purchases, according to a 2015 article by The Motley Fool. Similar to the transition of the U.S. Federal mortgage program, Sallie Mae, when shareholders saw a 300-percent return on investment, Fannie Mae shareholders are betting on a repeat performance in earnings.

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Full Answer

Since the introduction of the Fannie Mae ticker, which is FNMA on Nasdaq, a big payoff has inspired investors to place exceptional confidence in this government-backed stock, claims The Motley Fool. The potential for exponential earnings is cited as the number one reason for both premium stock and common stock shareholder interest in volume investment in Fannie Mae.

Lower per-share price has also prompted investor purchase of Fannie Mae's otherwise mid-priced shares, notes The Motely Fool. Investors convinced of the historical performance of Sallie Mae shares, are looking to federal changes in the government-backed mortgage program as a sign that deep-pockets investment in those shares could pay off in an estimated five-year time frame. A broader benefit is a good-faith investment in government-backed mortgage securities by investors following the 2007 U.S. mortgage crisis, which has been essential to the return of the nation to a market economy, and away from a policy of diffusing debt.

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