Federal Agricultural MortgageNYSE: AGM

Federal Agricultural Mortgage stock has increased by 117% since 2019, with earnings up 90%. The company has demonstrated outstanding performance in managing credit risk, interest rate risk, and leverage risk. Farmer Mac has a strong competitive advantage as a government-sponsored enterprise, with a moat that provides lower debt costs than even the best peers.

Federal Agricultural Mortgage Corporation (NYSE: AGM) First Quarter 2024 Earnings Conference Call will be held on May 6, 2024 at 8:30 AM ET. Present at the call will be Jalpa Nazareth, Bradford Nordholm, Aparna Ramesh, and Zachary Carpenter. Conference call participants include Bose George, William Ryan, and Brendan McCarthy. All lines are currently in a listen-only mode. Welcome to the Farmer Mac First Quarter 2024 Earnings Conference Call.

AGM reported quarterly earnings of $3.96 per share, surpassing the Zacks Consensus Estimate of $3.94 per share and an increase from $3.56 per share in the previous year.

W.P. Carey's leases tied to inflation will assist in providing income and dividend growth that outpaces inflation. Farmer Mac is a valuable find for investors seeking rapidly increasing dividend payouts.

The Federal Agricultural Mortgage Corporation has outperformed the S&P 500 with a 17% return since it was first covered, and recently raised its dividend by 27%. The company specializes in agricultural financing and rural infrastructure finance, both of which have experienced year-over-year growth to boost earnings. The dividend has consistently increased at a double-digit compound annual growth rate over the past decade.

The Zacks Mortgage & Related Services industry players benefit from expected rate cuts, low competition from banks and strong servicing business. PennyMac Financial Services (PFSI), Federal Agricultural Mortgage (AGM) and Ocwen Financial (OCN) look well-placed for growth.

Federal Agricultural Mortgage Corporation (AGM) Q4 2023 Earnings Call Transcript

Agriculture is a huge part of the American economy. Today, there are more than two million farms across the U.S. that contribute $1.26 trillion to U.S. gross domestic product (GDP), a 5.4% share.

Despite high mortgage rates and low origination volumes, AGM, TREE and OCN are set to hold ground on robust servicing opportunities and a focus on improving operating leverage.