Long-term investors who ride the shares up might also consider hanging in there for the income. If Fannie were to restore the dividend on the preferred series E shares, investors would receive dividends of $2.55 a share per year, for a yield of 20.8%, based on Friday's closing price.

If Freddie were to restore the dividend on its preferred series Z shares, the annual income would be $1.34 a share, for a yield of 43.37%, based on Friday's closing price.

Please see TheStreet's previous coverage, for much more information on Fannie Mae and Freddie Mac, including:

Turning away from Fannie Mae and Freddie Mac, the broad indexes all saw 1% gains, as investors appeared confident that Cyprus would be able to secure a bailout for the island nation's banks. After the Cypriot parliament rejected a "stability levy" against deposit accounts, the country's "bank holiday" continued, as officials on Friday prepared a new plan to restructure large banks and restrict deposit outflow after the country's banks reopen.

The KBW Bank Index ( I:BKX) rose slightly to close at 56.62.

-- Written by Philip van Doorn in Jupiter, Fla.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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