Federated Hermes, Inc. (NYSE:FHI) Announces Dividend Increase – $0.38 Per Share

Federated Hermes, Inc. (NYSE:FHI) declared a quarterly dividend on Thursday, April 30th. Shareholders of record on Friday, May 8th will be paid a dividend of 0.38 per share on Friday, May 15th. This represents a c) annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, May 8th. This is a 11.8% increase from Federated Hermes’s previous quarterly dividend of $0.34.

Federated Hermes has decreased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 4 consecutive years. Federated Hermes has a payout ratio of 31.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect Federated Hermes to earn $5.67 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 24.0%.

Federated Hermes Stock Performance

Shares of NYSE FHI opened at $56.75 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. The company has a market capitalization of $4.31 billion, a P/E ratio of 11.07, a price-to-earnings-growth ratio of 1.97 and a beta of 0.67. The business’s 50-day moving average price is $56.63 and its two-hundred day moving average price is $53.44. Federated Hermes has a one year low of $40.24 and a one year high of $59.05.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.20 by $0.07. Federated Hermes had a net margin of 22.40% and a return on equity of 34.25%. The company had revenue of $478.96 million for the quarter, compared to analyst estimates of $475.22 million. During the same quarter in the prior year, the business posted $1.25 EPS. Federated Hermes’s quarterly revenue was up 13.1% on a year-over-year basis. Analysts anticipate that Federated Hermes will post 5.08 earnings per share for the current fiscal year.

Insider Transactions at Federated Hermes

In other Federated Hermes news, VP Paul A. Uhlman sold 72,392 shares of the stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the transaction, the vice president directly owned 263,987 shares of the company’s stock, valued at $14,843,989.01. This represents a 21.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Seizert Capital Partners LLC raised its position in shares of Federated Hermes by 47.2% in the third quarter. Seizert Capital Partners LLC now owns 82,524 shares of the company’s stock worth $4,285,000 after buying an additional 26,459 shares in the last quarter. Jupiter Asset Management Ltd. increased its position in shares of Federated Hermes by 2,427.2% during the 3rd quarter. Jupiter Asset Management Ltd. now owns 527,368 shares of the company’s stock valued at $27,386,000 after purchasing an additional 506,500 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S boosted its stake in Federated Hermes by 3,592.3% in the third quarter. BI Asset Management Fondsmaeglerselskab A S now owns 46,412 shares of the company’s stock worth $2,410,000 after buying an additional 45,155 shares in the last quarter. Vest Financial LLC bought a new position in Federated Hermes during the third quarter valued at approximately $1,397,000. Finally, Allianz Asset Management GmbH boosted its stake in shares of Federated Hermes by 19.9% in the 3rd quarter. Allianz Asset Management GmbH now owns 1,008,221 shares of the company’s stock valued at $52,357,000 after purchasing an additional 167,225 shares in the last quarter. Institutional investors own 75.94% of the company’s stock.

About Federated Hermes

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.