For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. FHI has a Momentum Style Score of A, and shares are up 1.9% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $5.24 per share. FHI boasts an average earnings surprise of +14%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FHI should be on investors' short list.
Wall Street expects a year-over-year increase in earnings on higher revenues when Federated Hermes (FHI - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis one of the nation's largest managers of money market funds is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +2.6%.
Revenues are expected to be $494.1 million, up 16.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.09% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Federated Hermes?For Federated Hermes, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Federated Hermes will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Federated Hermes would post earnings of $1.2 per share when it actually produced earnings of $1.27, delivering a surprise of +5.83%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Federated Hermes doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.32; value investors should take notice.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $5.12 per share. FHI boasts an average earnings surprise of +14%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, FHI should be on investors' short list.
, /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, will report financial and operating results for the quarter ended June 30, 2026, after the market closes on Thursday, July 30, 2026. A conference call for investors and analysts will be held at 9 a.m. Eastern on Friday, July 31, 2026. President and Chief Executive Officer J. Christopher Donahue and Chief Financial Officer Thomas R. Donahue will host the call.
Investors interested in listening to the conference call should dial 877-545-0523 (domestic) or 973-528-0016 (international) or visit FederatedHermes.com/us for real-time internet access. To listen online, go to the About section of the website to register and join the call.
A telephone replay of the call will begin at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter the access code 54241. The online replay will be available via FederatedHermes.com/us for one year.
Federated Hermes, Inc. is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. FHI has a Momentum Style Score of B, and shares are up 1% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $5.12 per share. FHI boasts an average earnings surprise of +14%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FHI should be on investors' short list.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Pittsburgh, Federated Hermes (FHI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 7.97%. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 2.7%. In comparison, the Financial - Investment Management industry's yield is 2.57%, while the S&P 500's yield is 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.
FHI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.09 per share, representing a year-over-year earnings growth rate of 2.21%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
, /PRNewswire/ -- Federated Hermes, a global leader in active investing, today announced that Kathryn (Katie) Glass, CFA, senior portfolio manager and current co-head of the Federated Hermes Domestic High Yield Group, will become head of the group following the retirement of Mark Durbiano, CFA, effective December 31, 2026, after 44 years with Federated Hermes.
As head of the high-yield group, Glass will draw upon her 29 years of investment experience as she assumes all leadership and investment oversight responsibilities for the team. She has been co-head of the group since February 2025 and has been an integral member of Federated Hermes' domestic high-yield sector for 27 years. Since joining Federated Hermes in 1999, Glass has provided investment management across a range of high-yield investment strategies and offerings spanning mutual funds, collective investment trusts, exchange-traded funds (ETFs), subadvised portfolios and institutional separate accounts.
"Katie brings extensive experience in high-yield investment management and a strong understanding of our range of investment offerings," said John Fisher, Chairman of the Federated Advisory Companies, the Federated Hermes investment advisory subsidiaries. "Her appointment reflects her experience as co-head as well as her long-term demonstrated capabilities in actively managing through multiple market cycles to balance income generation and risk management in high-yield investment portfolios."
"The appointment is part of the successful execution of our long-established investment management succession plan," Fisher said. "Katie will continue Federated Hermes' collaborative investment process, which has produced strong, risk-adjusted results in high-yield strategies."
Glass will manage a deep and experienced high-yield fixed-income team for Federated Hermes' range of high-yield offerings. The 19-person team averages 19 years of industry experience and 16 years at Federated Hermes. The group manages approximately $11 billion in US high-yield fixed income strategies, as part of the firm's $100 billion in fixed-income assets as of March 31, 2026.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
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Certain statements in this press release, such as those relating to succession plans, retirement date, effective dates, and the ability to maintain investment processes, may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission and in each fund's registration statement (e.g., prospectus and statement of additional information). As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.
Past performance is no guarantee of future results. Investments are subject to risks and fluctuate in value.
Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. High-yield, lower-rated securities generally entail greater market, credit/default and liquidity risks and may be more volatile than investment-grade securities.
For more complete information, visit FederatedHermes.com/us or contact your investment professional for summary prospectuses or prospectuses. You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. Information about these and other important subjects is in the fund's summary prospectus or prospectus, which you should read carefully before investing.
Separately managed and institutional separate accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.
Federated Securities Corp. is Distributor of the Federated Hermes mutual funds and ETFs.
Federated Hermes strategically expands ETF lineup to meet client interests and objectives in a wide range of market conditions Federated Hermes Ultrashort Bond ETF aims to deliver attractive income while maintaining a conservative risk profile , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today introduced Federated Hermes Ultrashort Bond ETF (CBOE: FUSD), designed for investors seeking higher yields in an uncertain interest rate environment.
Federated Hermes Ultrashort Bond ETF pursues its objective of providing total return consistent with current income by investing primarily in a diversified portfolio of investment-grade debt securities. The ETF seeks to offer a competitive and attractive yield while minimizing interest rate risk by limiting its effective duration to one year or less.
The portfolio management team – led by Nicholas Tripodes, CFA, senior portfolio manager and head of the Low Duration Multisector Group; Daniel Mastalski, CFA, portfolio manager; and Bradley Payne, portfolio manager – actively adjusts positioning as market conditions evolve, drawing on the collective insights of Federated Hermes' fixed income leadership and sector specialists. Portfolio construction is guided by the firm's established fixed-income framework, which emphasizes sector allocation, security selection and interest-rate positioning, seeking diversified sources of alpha rather than reliance on any single market factor. Federated Hermes manages $42.9 billion in short-duration fixed-income assets as of March 31, 2026.
"We offer a comprehensive suite of investment solutions across the full investment horizon to help meet the evolving needs of our clients," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "Through active allocation across high‑quality, short‑term fixed-income sectors, Federated Hermes Ultrashort Bond ETF offers a disciplined step beyond traditional cash alternatives while avoiding long‑duration risk."
"With more than 55 years of fixed-income investing experience, Federated Hermes is known for disciplined credit research, management stability and a repeatable investment process," said Brandon Clark, ETF business director at Federated Hermes. "Federated Hermes Ultrashort Bond ETF reflects that long history of short-duration fixed-income strategies with the outperformance potential, tactical flexibility, tax efficiency, transparency, liquidity and ease of use of active ETFs."
Federated Hermes offers actively managed ETFs designed to pursue growth, diversification or income generation for strategic or tactical needs. As of May 31, 2026, Federated Hermes manages more than $2.6 billion in ETF assets.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
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Investors should carefully consider the ETF's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us at 1-800-341-7400 or visit FederatedHermes.com/us. Please carefully read the summary prospectus or the prospectus before investing.
Past performance is no guarantee of future results.
ETFs are subject to risks and fluctuate in value.
Diversification does not assure a profit nor protect against loss.
Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. In addition, fixed-income investors should be aware of other risks such as credit risk, inflation risk, call risk and liquidity risk.
The fund is a new fund that recently commenced operations. New funds have limited operating histories for investors to evaluate and new funds may not attract sufficient assets to achieve investment and trading efficiencies.
ETFs are generally more tax efficient than traditional mutual funds due to their structure. When investors redeem shares, ETFs can do so in-kind, meaning they exchange shares for underlying assets without triggering capital gains taxes for remaining investors. ETFs often distribute fewer capital gains to investors compared to mutual funds, leading to lower tax liabilities.
ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. NAVs are calculated using prices as of the end of regular trading on the New York Stock Exchange (normally 4:00 PM Eastern Time). Recent information, including information about the fund's NAV, market price, premiums and discounts, and bid-ask spreads, is included on the fund's website at FederatedHermes.com/us.
The fund is not a "money market" mutual fund. Some money market mutual funds attempt to maintain a stable net asset value through compliance with relevant Securities and Exchange Commission (SEC) rules. The fund is not governed by those rules, and its shares will fluctuate in value.
Alpha is a measure of excess return.
The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity. Securities on the long end of the yield curve have longer maturities.
There is no guarantee that active ETFs will outperform passive ETFs and they may underperform. Active ETFs typically have higher fees than passive ETFs, which can reduce performance.
Federated Securities Corp.is Distributor of the Federated Hermes Funds.
Federated Hermes International Leaders ETF can serve as core international equity allocation Federated Hermes strategically expands ETF lineup to meet client interests and objectives in a wide range of market conditions , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today introduced Federated Hermes International Leaders ETF (CBOE: FHIL), designed for investors seeking international equity exposure through well-known, established global companies.
Utilizing deep fundamental analysis to identify undervalued companies across international markets, Federated Hermes International Leaders ETF seeks to achieve its objective of long-term capital growth by investing primarily in developed market stocks of high-quality, foreign companies that appear to be trading below their intrinsic value. Its high-conviction portfolio typically consists of 60 to 85 companies.
The ETF is managed by Richard Winkowski, Jr., senior portfolio manager and head of the International Core/Value Team, and Dariusz Czoch, CFA, senior portfolio manager, who also manage the $1.5 billion Federated Hermes International Leaders Fund. Federated Hermes International Core/Value Team has more than 25 years of experience managing international equity strategies.
"Research from Federated Hermes' Portfolio Construction Team suggests incorporating international equities into the equity sleeve of a traditional stock-and-bond portfolio may improve risk-adjusted returns1," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "With a concentrated portfolio filled with international industry leaders that provide products or services essential to everyday life, Federated Hermes International Leaders ETF is a compelling option for an international equity allocation."
"In expanding our ETF lineup, we have focused on meeting investor demand by offering ETF versions of our most popular strategies," said Brandon Clark, ETF business director at Federated Hermes. "Federated Hermes International Leaders ETF offers investors access to the benefits of international equity investments with the ETF vehicle's tax efficiency, transparency, liquidity and ease of use."
Federated Hermes offers actively managed ETFs designed to pursue growth, diversification or income generation for strategic or tactical needs. As of May 31, 2026, Federated Hermes manages more than $2.6 billion in ETF assets.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
Investors should carefully consider the ETF's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us at 1-800-341-7400 or visit FederatedHermes.com/us. Please carefully read the summary prospectus or the prospectus before investing.
ETFs are subject to risks and fluctuate in value.
Diversification does not assure a profit nor protect against loss
The value of equity securities in the fund's portfolio will fluctuate and, as a result, the fund's share price may decline. Equity securities may decline in value because of an increase in interest rates or changes in the stock market.
The fund is a new fund that recently commenced operations. New funds have limited operating histories for investors to evaluate and new funds may not attract sufficient assets to achieve investment and trading efficiencies.
While stocks have higher return potential, they may be more volatile than bonds.
International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets.
The fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.
Growth stocks tend to have higher valuations and thus are typically more volatile than value stocks. Growth stocks also may not pay dividends or may pay lower dividends than value stocks.
Value stocks tend to have higher dividends and thus have a higher income-related component in their total return than growth stocks. Value stocks also may lag growth stocks in performance, particularly in late stages of a market advance.
ETFs are generally more tax efficient than traditional mutual funds due to their structure. When investors redeem shares, ETFs can do so in-kind, meaning they exchange shares for underlying assets without triggering capital gains taxes for remaining investors. ETFs often distribute fewer capital gains to investors compared to mutual funds, leading to lower tax liabilities.
ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. NAVs are calculated using prices as of the end of regular trading on the New York Stock Exchange (normally 4:00 PM Eastern Time). Recent information, including information about the fund's NAV, market price, premiums and discounts, and bid-ask spreads, is included on the fund's website at FederatedHermes.com/us.
1 Sources: Morningstar, Inc., Federated Hermes, Inc. Based on returns from 1/1/76-12/31/24 of the S&P 500® (US equities), MSCI EAFE Index (international equities) and Bloomberg US Aggregate Bond Index (bonds), Federated Hermes Portfolio Construction Solutions Team analysis found that a 39% allocation to US equities, 21% allocation to international equities and 40% allocation to bonds produced the highest long-term return with the lowest risk (standard deviation/volatility of returns) versus other allocation mixes in a traditional 60/40 stock-and-bond portfolio. This information is for illustrative purposes only and is not indicative of any specific investment. Past performance is no guarantee of future results.
Bloomberg US Aggregate Bond Index: Is an unmanaged index composed of securities from the Bloomberg Government/Corporate Bond Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index.
MSCI Europe, Australasia and Far East Index (EAFE): Is an equity index which captures large- and mid-cap representation across Developed Markets countries around the world, excluding the U.S. and Canada. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
S&P 500®: Is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
Federated Securities Corp.is Distributor of the Federated Hermes Funds.
Key Takeaways Federated Hermes hit an all-time high of $59.68 and outperformed BLK, ARES and the industry YTD.FHI's AUM grew at a 7.8% CAGR over the five years ended 2025, aided by strategic acquisitions.FHI maintains strong liquidity and continues to support dividends and share repurchases. Shares of Federated Hermes, Inc. (FHI - Free Report) have touched its all-time high of $59.68 during yesterday’s trading session before closing at $59.29.
The FHI stock has gained 13.9% year to date, significantly outperforming the industry, which has lost 7.4% over the same period. FHI has also outperformed its close peers, BlackRock, Inc. (BLK - Free Report) and Ares Management Corporation (ARES - Free Report) . BlackRock and Ares Management shares have lost 1.2% and 20.6%, respectively, year to date.
Price Performance
Image Source: Zacks Investment Research
Let’s now take a closer look at the factors supporting FHI’s momentum.
Major Factors at Play for Federated HermesInorganic Growth Efforts Continue to Drive AUM: Federated Hermes has been strengthening its private markets and investment capabilities through strategic acquisitions over the years. In April 2026, the company acquired an 80% stake in FCP Fund Manager, L.P., a U.S.-based real estate investment manager. The transaction expanded its private markets and alternatives platform in the United States while complementing its U.K. real estate operations.
Earlier, in April 2025, Federated Hermes acquired a majority stake in Rivington Energy Management Limited, strengthening its infrastructure platform and private markets offering. Further, the acquisition of C.W. Henderson and Associates, Inc. in 2022 strengthened its separately managed account business.
Through these acquisitions, Federated Hermes continues to expand its presence across asset classes and geographic markets. Its inorganic growth initiatives have supported steady growth in assets under management (AUM), which increased at a 7.8% compound annual growth rate (CAGR) over the five years ended 2025, with the momentum continuing in the first quarter of 2026. These efforts are expected to support long-term AUM growth and enhance the company's revenue-generating capabilities.
Strength in Money Market Business: Federated Hermes continues to benefit from its strong position in the money market space. The company's money market assets expanded at a 10.2% CAGR over the five years ended 2025, with the momentum continuing in the first quarter of 2026.
The U.S. asset-management industry has continued to benefit from robust demand for money market products and cash-management solutions so far in 2026. Investors have maintained significant cash balances in money market funds to capture attractive short-term yields and preserve liquidity, providing a favorable backdrop for asset managers like FHI with sizable money market franchises.
Given this favorable industry backdrop, management expects money market strategies to remain attractive, as fund yields continue to compare favorably with direct market instruments and bank deposit rates. As such, continued growth in the money market AUM is likely to support overall asset growth and enhance the company's ability to offer a broader range of solutions to clients.
Strong Liquidity Supports Shareholder Returns: Federated Hermes maintains a solid liquidity position, providing financial flexibility and supporting its capital distribution activities. As of March 31, 2026, the company had cash and other investments of $645.4 million, exceeding its long-term debt of $348.4 million. Further, it had no outstanding borrowings under its $350 million unsecured revolving credit facility.
As such, the company's healthy liquidity position continues to support its shareholder-friendly initiatives. In July 2025, Federated Hermes authorized its 18th share repurchase program, allowing it to buyback up to an additional 5 million shares of common stock. As of March 31, 2026, 4.6 million shares remained available under its existing repurchase authorizations. Apart from share buybacks, the company has consistently paid dividends since its initial public offering in 1998. In April 2026, it increased its quarterly dividend by 11.8% to 38 cents per share, reflecting an annualized dividend growth rate of 6.6%. FHI currently offers a dividend yield of 2.6%, while its peers, BlackRock and Ares Management, have dividend yields of 2.2% and 4.2%, respectively.
Dividend Yield
Image Source: Zacks Investment Research
A Few Concerns Persist for Federated HermesMounting Expenses: Federated Hermes has been witnessing a steady increase in operating expenses. Although the metric declined in 2021, operating expenses recorded a five-year (ended 2025) CAGR of 4.5%, primarily driven by intangible asset-related costs.
Further, expense growth continued in the first quarter of 2026, due to higher distribution costs associated with increased average money market fund assets and elevated incentive compensation. With additional FCP acquisition-related costs expected in the second quarter of 2026, expense pressures are likely to persist in the near term.
Expense Growth Trend
Image Source: Zacks Investment Research
Dependence on Investment Advisory Fees: Net investment advisory fees account for a substantial portion of FHI's revenues. As of March 31, 2026, these fees comprised 66.7% of total revenues. As such, the company's financial performance remains closely tied to the level of managed assets.
Significant fluctuations in the fair value of securities held by the funds and other products advised by Federated Hermes, or elevated client redemptions, could adversely affect AUM levels. This, in turn, may hurt investment advisory fees, posing a headwind to the company's revenue growth and profitability.
FHI’s Bullish Analyst ExpectationsEarnings estimates for Federated Hermes have moved upward for 2026 over the past month, while estimates for 2027 have remained unchanged. The anticipated estimates imply growth of 2.4% and 10.8% for 2026 and 2027, respectively, reflecting analysts’ confidence in the company’s earnings trajectory.
Estimates Revision Trend
Image Source: Zacks Investment Research
Attractive Valuation for FHI StockFHI stock appears inexpensive relative to the industry. The company's forward 12-month price-to-earnings (P/E) multiple of 11.1X is below the industry's 13.9X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Meanwhile, BlackRock holds a P/E ratio of 18.7X, while Ares Management’s P/E ratio stands at 19.1X.
How to Approach FHI Stock NowFHI's inorganic growth efforts, strength in the money market business and healthy liquidity position are expected to support its financial performance. The company is expected to continue rewarding shareholders through dividends and share repurchases.
However, mounting expenses, driven by higher distribution costs and acquisition-related expenses, are likely to hurt the company's profitability in the near term. Its significant dependence on investment advisory fees remains a concern. Ongoing uncertainty in the private credit market amid weaker investor sentiment and rising redemption requests across the sector could weigh on fundraising activity and its AUM growth.
Hence, investors should not rush to buy the FHI stock now; instead, they should keep the stock on their radars and wait for a more attractive entry point. Those who already own the stock can continue to hold it, given its solid fundamentals.
At present, FHI carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Federated Hermes (FHI - Free Report) . This company, which is in the Zacks Financial - Investment Management industry, shows potential for another earnings beat.
This one of the nation's largest managers of money market funds has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 18.28%.
For the last reported quarter, Federated Hermes came out with earnings of $1.39 per share versus the Zacks Consensus Estimate of $1.2 per share, representing a surprise of 15.83%. For the previous quarter, the company was expected to post earnings of $1.11 per share and it actually produced earnings of $1.34 per share, delivering a surprise of 20.72%.
Price and EPS Surprise
For Federated Hermes, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Federated Hermes currently has an Earnings ESP of +0.35%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on April 30, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Total assets under management reach a record $907.1 billion Money market assets reach a record $684.7 billion Equity assets reach a record $100.8 billion Q1 2026 earnings per diluted share of $1.27 Quarterly dividend increased by 11.8% from previous quarter to $0.38 per share , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.27 for Q1 2026, compared to $1.25 for the same quarter last year, on net income of $96.4 million for Q1 2026, compared to $101.1 million for Q1 2025. Federated Hermes' Q1 2025 results included a $12.9 million decrease in other operating expense, or $0.15 per diluted share, resulting from a value-added tax (VAT) refund received as part of amended VAT filings in the U.K.
Federated Hermes' total managed assets were a record $907.1 billion at March 31, 2026, up $67.3 billion or 8% from $839.8 billion at March 31, 2025 and up $4.5 billion from $902.6 billion at Dec. 31, 2025. Total average managed assets for Q1 2026 were $915.6 billion, up $72.4 billion or 9% from $843.2 billion for Q1 2025 and up $41.9 billion or 5% from $873.7 billion for Q4 2025.
"In the first quarter, we saw record gross sales and positive net flows in our equity offerings as we continued momentum from the previous year, with investor interest in a range of our offering types," said J. Christopher Donahue, president and chief executive officer. "Separate accounts reached new record assets on overall demand for our MDT suite of quantitative investment solutions, led by our MDT All Cap Core and MDT Mid Cap Growth offerings. Investors with interest in capital preservation and liquidity continued to rely on our money market offerings and—for those interested in moving further out the yield curve in the pursuit of higher yields than money market products—our ultrashort funds."
Federated Hermes' board of directors declared a dividend of $0.38 per share, which was an increase of $0.04 or 11.8% from the previous quarter. The dividend is payable on May 15, 2026 to shareholders of record as of May 8, 2026. During Q1 2026, Federated Hermes purchased 1,191,300 shares of Federated Hermes class B common stock for $66.0 million.
Equity assets were a record $100.8 billion at March 31, 2026, up $19.9 billion or 25% from $80.9 billion at March 31, 2025 and up $2.9 billion or 3% from $97.9 billion at Dec. 31, 2025. Top-selling equity funds during Q1 2026 on a net basis were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT All Cap Core Fund, Federated Hermes MDT US Equity Fund and Federated Hermes MDT Small Cap Core Fund.
Fixed-income assets were $99.8 billion at March 31, 2026, up $0.3 billion from $99.5 billion at March 31, 2025 and down $0.3 billion from $100.1 billion at Dec. 31, 2025. Top-selling fixed-income funds during Q1 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Municipal Ultrashort Fund, Federated Hermes Government Ultrashort Fund and Federated Hermes Short-Term Income Fund.
Alternative/private markets assets were $19.0 billion at March 31, 2026, down $0.4 billion or 2% from $19.4 billion at March 31, 2025 and down $0.1 billion or 1% from $19.1 billion at Dec. 31, 2025.
Money market assets were a record $684.7 billion at March 31, 2026, up $47.6 billion or 7% from $637.1 billion at March 31, 2025 and up $2.1 billion from $682.6 billion at Dec. 31, 2025. Money market fund assets were $502.8 billion at March 31, 2026, up $37.9 billion or 8% from $464.9 billion at March 31, 2025 and down $5.6 billion or 1% from $508.4 billion at Dec. 31, 2025.
Financial Summary
Q1 2026 vs. Q1 2025
Revenue increased $55.4 million or 13% primarily due to an increase in revenue due to higher average money market and equity assets. This increase was partially offset by a decrease in performance fees and carried interest of $5.6 million, which includes a decrease of $1.0 million in carried interest from consolidated carried interest vehicles, which is largely offset in compensation expense.
During Q1 2026, Federated Hermes derived 54% of its revenue from money market assets, 45% from long-term assets (30% from equity, 10% from fixed-income, and 5% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.
Operating expenses increased $60.9 million or 21% primarily due to a $26.7 million increase in distribution expenses resulting primarily from higher average money market fund assets, an $18.2 million increase in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates, and a $10.8 million increase in compensation and related expense primarily due to higher incentive compensation.
Nonoperating income (expenses), net for Q1 2026 decreased $0.8 million due primarily to lower net gains on securities.
Q1 2026 vs. Q4 2025
Revenue decreased $3.9 million or 1% primarily due to a $10.5 million decrease in revenue resulting from two fewer days in Q1 2026 and a decrease in development fees of $8.6 million. These decreases were partially offset by an increase in revenue due to higher average money market and equity assets.
Operating expenses increased $5.4 million or 2% primarily due to a $9.1 million increase in compensation and related expense primarily from higher stock-based compensation expense, partially offset by a $3.4 million decrease in Other expense primarily due to lower charitable contributions.
Nonoperating income (expenses), net decreased $1.3 million due primarily to lower net gains on securities .
Earnings call information
Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, May 1, 2026. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on May 1, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 53870. The online replay will be available via FederatedHermes.com/us for one year.
About Federated Hermes
Federated Hermes, Inc. is a global leader in active investment management, with $907.1 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide.
Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 10th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.
###
1) As of March 31, 2026.
2) Morningstar, March 31, 2026. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli,Q4 2025.
Federated Securities Corp. is distributor of the Federated Hermes funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.
Cautionary statements
Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Quarter Ended
%
Change
Q1 2025
to Q1
2026
Quarter Ended
%
Change
Q4 2025
to Q1
2026
March 31, 2026
March 31, 2025
Dec. 31, 2025
Revenue
Investment advisory fees, net
$ 319,408
$ 287,460
11 %
$ 313,975
2 %
Administrative service fees, net—affiliates
110,285
101,109
9
109,759
0
Other service fees, net
49,264
34,971
41
59,099
(17)
Total Revenue
478,957
423,540
13
482,833
(1)
Operating Expenses
Compensation and related
154,119
143,270
8
144,981
6
Distribution
125,745
99,085
27
122,339
3
Systems and communications
26,463
24,226
9
24,719
7
Professional service fees
21,336
18,548
15
23,399
(9)
Office and occupancy
10,062
9,952
1
9,704
4
Advertising and promotional
4,098
4,576
(10)
7,001
(41)
Travel and related
3,850
3,553
8
4,677
(18)
Intangible asset related
3,422
3,196
7
3,475
(2)
Other
3,531
(14,638)
(124)
6,964
(49)
Total Operating Expenses
352,626
291,768
21
347,259
2
Operating Income
126,331
131,772
(4)
135,574
(7)
Nonoperating Income (Expenses)
Investment income (loss), net
6,653
7,475
(11)
7,886
(16)
Debt expense
(3,185)
(3,179)
0
(3,201)
0
Other, net
(30)
(27)
(11)
73
(141)
Total Nonoperating Income (Expenses), net
3,438
4,269
(19)
4,758
(28)
Income before income taxes
129,769
136,041
(5)
140,332
(8)
Income tax provision
33,823
32,165
5
32,899
3
Net income including the noncontrolling interests in subsidiaries
95,946
103,876
(8)
107,433
(11)
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries
(432)
2,742
(116)
394
(210)
Net Income
$ 96,378
$ 101,134
(5) %
$ 107,039
(10) %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted
$ 1.27
$ 1.25
2 %
$ 1.39
(9) %
Weighted-Average Shares Outstanding
Basic
72,648
77,541
73,795
Diluted
72,650
77,542
73,795
Dividends Declared Per Share
$ 0.34
$ 0.31
$ 0.34
1)
Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.4 million, $4.5 million and $4.8 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended March 31, 2026, March 31, 2025 and Dec. 31, 2025, respectively, was excluded from the computation of earnings per share.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
March 31, 2026
Dec. 31, 2025
Assets
Cash and other investments
$ 645,417
$ 724,297
Other current assets
143,153
139,495
Intangible assets, net, including goodwill
1,173,986
1,183,612
Other long-term assets
181,251
181,933
Total Assets
$ 2,143,807
$ 2,229,337
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities
$ 240,680
$ 314,141
Long-term debt
348,434
348,369
Other long-term liabilities
291,853
303,350
Redeemable noncontrolling interests
58,520
66,529
Equity excluding treasury stock
2,133,825
2,070,162
Treasury stock
(929,505)
(873,214)
Total Liabilities, Redeemable Noncontrolling Interests and Equity
$ 2,143,807
$ 2,229,337
Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)
Quarter Ended
March 31, 2026
Dec. 31, 2025
March 31, 2025
Equity
Beginning assets
$ 97,898
$ 94,656
$ 79,423
Sales1
9,091
8,949
7,412
Redemptions1
(6,878)
(7,431)
(5,993)
Net sales (redemptions)1
2,213
1,518
1,419
Net exchanges
(139)
139
(114)
Impact of foreign exchange2
(287)
107
754
Market gains and (losses)3
1,147
1,478
(569)
Ending assets
$ 100,832
$ 97,898
$ 80,913
Fixed Income
Beginning assets
$ 100,127
$ 101,813
$ 98,059
Sales1
5,927
5,891
5,944
Redemptions1
(6,349)
(8,687)
(6,288)
Net sales (redemptions)1
(422)
(2,796)
(344)
Net exchanges
148
15
101
Impact of foreign exchange2
(40)
6
85
Market gains and (losses)3
(15)
1,089
1,585
Ending assets
$ 99,798
$ 100,127
$ 99,486
Alternative/Private Markets
Beginning assets
$ 19,101
$ 19,024
$ 18,864
Sales1
629
724
1,085
Redemptions1
(547)
(592)
(1,024)
Net sales (redemptions)1
82
132
61
Net exchanges
0
0
1
Impact of foreign exchange2
(275)
35
532
Market gains and (losses)3
83
(90)
(32)
Ending assets
$ 18,991
$ 19,101
$ 19,426
Multi-asset
Beginning assets
$ 2,854
$ 2,940
$ 2,883
Sales1
58
59
63
Redemptions1
(94)
(92)
(105)
Net sales (redemptions)1
(36)
(33)
(42)
Net exchanges
1
(121)
2
Market gains and (losses)3
(41)
68
(17)
Ending assets
$ 2,778
$ 2,854
$ 2,826
Total Long-term Assets
Beginning assets
$ 219,980
$ 218,433
$ 199,229
Sales1
15,705
15,623
14,504
Redemptions1
(13,868)
(16,802)
(13,410)
Net sales (redemptions)1
1,837
(1,179)
1,094
Net exchanges
10
33
(10)
Impact of foreign exchange2
(602)
148
1,371
Market gains and (losses)3
1,174
2,545
967
Ending assets
$ 222,399
$ 219,980
$ 202,651
1)
For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
2)
Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.
3)
Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.
Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type
(in millions)
Quarter Ended
March 31, 2026
Equity
Fixed Income
Alternative / Private
Markets
Multi-asset
Total
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds.
Separate
Accounts1
Beginning assets
$ 54,988
$ 42,910
$ 45,973
$ 54,154
$ 12,085
$ 7,016
$ 2,850
$ 4
$ 115,896
$ 104,084
Sales
5,855
3,236
3,985
1,942
609
20
58
0
10,507
5,198
Redemptions
(4,561)
(2,317)
(3,993)
(2,356)
(318)
(229)
(94)
0
(8,966)
(4,902)
Net sales (redemptions)
1,294
919
(8)
(414)
291
(209)
(36)
0
1,541
296
Net exchanges
(169)
30
148
0
0
0
1
0
(20)
30
Impact of foreign exchange2
(158)
(129)
(26)
(14)
(159)
(116)
0
0
(343)
(259)
Market gains and (losses)3
(767)
1,914
(166)
151
122
(39)
(41)
0
(852)
2,026
Ending assets
$ 55,188
$ 45,644
$ 45,921
$ 53,877
$ 12,339
$ 6,652
$ 2,774
$ 4
$ 116,222
$ 106,177
1)
Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
2)
Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
3)
Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.
Unaudited Changes in Long-Term Assets - By Offering Type
(in millions)
Quarter Ended
March 31, 2026
Dec. 31, 2025
March 31, 2025
Total Fund Assets
Beginning assets
$ 115,896
$ 115,215
$ 103,567
Sales
10,507
10,419
9,279
Redemptions
(8,966)
(10,835)
(8,763)
Net sales (redemptions)
1,541
(416)
516
Net exchanges
(20)
33
0
Impact of foreign exchange1
(343)
34
685
Market gains and (losses)2
(852)
1,030
(479)
Ending assets
$ 116,222
$ 115,896
$ 104,289
Total Separate Account Assets3
Beginning assets
$ 104,084
$ 103,218
$ 95,662
Sales4
5,198
5,204
5,225
Redemptions4
(4,902)
(5,967)
(4,647)
Net sales (redemptions)4
296
(763)
578
Net exchanges
30
0
(10)
Impact of foreign exchange1
(259)
114
686
Market gains and (losses)2
2,026
1,515
1,446
Ending assets
$ 106,177
$ 104,084
$ 98,362
Total Long-term Assets3
Beginning assets
$ 219,980
$ 218,433
$ 199,229
Sales4
15,705
15,623
14,504
Redemptions4
(13,868)
(16,802)
(13,410)
Net sales (redemptions)4
1,837
(1,179)
1,094
Net exchanges
10
33
(10)
Impact of foreign exchange1
(602)
148
1,371
Market gains and (losses)2
1,174
2,545
967
Ending assets
$ 222,399
$ 219,980
$ 202,651
1)
Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
2)
Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.
3)
Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.
4)
For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Unaudited Managed Assets
(in millions)
March 31, 2026
Dec. 31, 2025
Sept. 30, 2025
June 30, 2025
March 31, 2025
By Asset Class
Equity
$ 100,832
$ 97,898
$ 94,656
$ 88,994
$ 80,913
Fixed-Income
99,798
100,127
101,813
98,687
99,486
Alternative / Private Markets
18,991
19,101
19,024
20,738
19,426
Multi-Asset
2,778
2,854
2,940
2,856
2,826
Total Long-Term Assets
222,399
219,980
218,433
211,275
202,651
Money Market
684,748
682,604
652,767
634,400
637,122
Total Managed Assets
$ 907,147
$ 902,584
$ 871,200
$ 845,675
$ 839,773
By Offering Type
Funds:
Equity
$ 55,188
$ 54,988
$ 54,110
$ 49,359
$ 43,910
Fixed-Income
45,921
45,973
46,478
45,415
45,800
Alternative / Private Markets
12,339
12,085
11,814
12,905
11,879
Multi-Asset
2,774
2,850
2,813
2,730
2,700
Total Long-Term Assets
116,222
115,896
115,215
110,409
104,289
Money Market
502,775
508,403
492,701
468,044
464,912
Total Fund Assets
$ 618,997
$ 624,299
$ 607,916
$ 578,453
$ 569,201
Separate Accounts:
Equity
$ 45,644
$ 42,910
$ 40,546
$ 39,635
$ 37,003
Fixed-Income
53,877
54,154
55,335
53,272
53,686
Alternative / Private Markets
6,652
7,016
7,210
7,833
7,547
Multi-Asset
4
4
127
126
126
Total Long-Term Assets
106,177
104,084
103,218
100,866
98,362
Money Market
181,973
174,201
160,066
166,356
172,210
Total Separate Account Assets
$ 288,150
$ 278,285
$ 263,284
$ 267,222
$ 270,572
Total Managed Assets
$ 907,147
$ 902,584
$ 871,200
$ 845,675
$ 839,773
Unaudited Average Managed Assets
Quarter Ended
(in millions)
March 31, 2026
Dec. 31, 2025
Sept. 30, 2025
June 30, 2025
March 31, 2025
By Asset Class
Equity
$ 102,037
$ 96,404
$ 92,436
$ 83,564
$ 82,105
Fixed-Income
100,996
100,855
99,206
98,365
99,360
Alternative / Private Markets
19,232
18,971
19,862
20,053
19,012
Multi-Asset
2,859
2,836
2,895
2,779
2,900
Total Long-Term Assets
225,124
219,066
214,399
204,761
203,377
Money Market
690,450
654,635
645,092
632,543
639,827
Total Avg. Managed Assets
$ 915,574
$ 873,701
$ 859,491
$ 837,304
$ 843,204
By Offering Type
Funds:
Equity
$ 56,987
$ 55,101
$ 51,828
$ 45,965
$ 45,260
Fixed-Income
46,096
46,116
45,743
44,972
45,715
Alternative / Private Markets
12,254
11,871
12,347
12,370
11,610
Multi-Asset
2,855
2,833
2,770
2,654
2,774
Total Long-Term Assets
118,192
115,921
112,688
105,961
105,359
Money Market
507,752
493,355
482,237
462,683
463,727
Total Avg. Fund Assets
$ 625,944
$ 609,276
$ 594,925
$ 568,644
$ 569,086
Separate Accounts:
Equity1
$ 45,050
$ 41,303
$ 40,608
$ 37,599
$ 36,845
Fixed-Income
54,900
54,739
53,463
53,393
53,645
Alternative / Private Markets
6,978
7,100
7,515
7,683
7,402
Multi-Asset1
4
3
125
125
126
Total Long-Term Assets
106,932
103,145
101,711
98,800
98,018
Money Market
182,698
161,280
162,855
169,860
176,100
Total Avg. Separate Account Assets
$ 289,630
$ 264,425
$ 264,566
$ 268,660
$ 274,118
Total Avg. Managed Assets
$ 915,574
$ 873,701
$ 859,491
$ 837,304
$ 843,204
1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.
Federated Hermes (FHI - Free Report) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.97%. A quarter ago, it was expected that this one of the nation's largest managers of money market funds would post earnings of $1.2 per share when it actually produced earnings of $1.39, delivering a surprise of +15.83%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Federated Hermes, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $478.96 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.17%. This compares to year-ago revenues of $423.54 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Federated Hermes shares have added about 8.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Federated Hermes?While Federated Hermes has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Federated Hermes was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $484.37 million in revenues for the coming quarter and $5.08 on $1.95 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Affiliated Managers Group (AMG - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 1.
This asset manager is expected to post quarterly earnings of $8.10 per share in its upcoming report, which represents a year-over-year change of +55.8%. The consensus EPS estimate for the quarter has been revised 0% lower over the last 30 days to the current level.
Affiliated Managers Group's revenues are expected to be $543.02 million, up 9.4% from the year-ago quarter.
Key Takeaways FHI beats Q1 EPS estimates as revenues climb 13.1% y/y and AUM hit a record $907.1B.FHI sees strong fee growth, led by advisory and service fees, boosting the overall revenue performance.FHI faces rising costs, with operating expenses up 20.9%, partially offsetting revenue and AUM growth. Federated Hermes, Inc.’s (FHI - Free Report) first-quarter 2026 earnings per share of $1.27 topped the Zacks Consensus Estimate of $1.20. The bottom line grew 1.6% from the year-ago quarter.
Higher net investment advisory fees, net administrative service fees and net other service fees are major driving factors. The company also achieved a record level of assets under management (AUM). However, the rise in expenses remained a headwind.
Net income was $96.4 million in the first quarter, down 4.7% from the year-ago quarter.
FHI’s Revenues & Expenses RiseTotal revenues increased 13.1% year over year to $478.96 million. The top line surpassed the Zacks Consensus Estimate by 0.17%.
Quarterly net investment advisory fees rose 11.1% year over year to $319.4 million.
Net other service fees grew 40.9% year over year to $49.3 million, and net administrative service fees rose 9.1% to $110.3 million.
In the first quarter, Federated Hermes derived 54% of its revenues from money-market assets, 45% from long-term assets and 1% from sources other than managed assets.
Total operating expenses increased 20.9% year over year to $352.6 million.
FHI recorded a net non-operating income of $3.4 million, down from $4.3 million in the prior-year quarter.
Federated Hermes’ Balance Sheet Position SolidAs of March 31, 2026, cash and other investments and total long-term debt were $645.4 million and $348.4 million, respectively. This compares to $724.3 million and $348.4 million, respectively, as of Dec. 31, 2025.
FHI’s Asset Position SolidAs of March 31, 2026, total managed assets were at a record level of $907.1 billion, up 8% year over year.
FHI reported record money-market assets of $684.7 billion, up 7% year over year. Fixed-income assets increased marginally to $99.8 billion.
Equity assets of $100.8 billion increased 25% from the prior-year quarter. Alternative/private market assets declined 2% year over year to $19 billion.
Average managed assets totaled $915.6 billion, up 9% year over year.
Federated Hermes’ Capital Distribution UpdateThe company repurchased 1,191,300 shares of its class B common stock in the reported quarter for $66 million.
Federated Hermes also declared a dividend of 38 cents per share, up 11.8% from the previous quarter. The dividend is payable May 15, 2026, to shareholders of record as of May 8, 2026.
Our Viewpoint on FHIFederated Hermes delivered a strong quarter with solid growth in revenues and AUM, supported mainly by its money-market and equity asset segments. Although operating expenses rose, revenue growth helped maintain momentum. The balance sheet remains stable with manageable debt and healthy cash/investment positions. Continued asset growth places the firm in a favorable position amid investor demand for liquidity and diversification.
Federated Hermes, Inc. Price, Consensus and EPS Surprise
Currently, FHI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Asset ManagersBlackRock’s (BLK - Free Report) first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses were a headwind for BLK.
Blackstone’s (BX - Free Report) first-quarter 2026 distributable earnings of $1.36 per share surpassed the Zacks Consensus Estimate of $1.33. The figure grew 25% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance and higher revenues. However, an increase in GAAP expenses was the undermining factor.
, /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced that Steve Chiavarone, CFA, will become Chief Investment Officer (CIO) for Global Equities effective Sept. 1, 2026, following Steve Auth's decision to retire after 26 years with the firm, including 24 years as global equity CIO. Chiavarone currently serves as Deputy CIO for Global Equities.
As CIO for Global Equities, Chiavarone will be responsible for supervising investment processes, overseeing portfolio performance and attribution across the firm's Global Equities platform and the continued development of the investment teams. He will also help oversee all aspects of the investment process across a diverse range of offerings and play a central role in articulating Federated Hermes' macro‑investment positioning to clients, intermediary customers and other stakeholders.
Chiavarone brings 21 years of investment experience, including 19 years in Federated Hermes' Global Equities Group, and has served as Deputy CIO since August 2025. He is head of the firm's Multi‑Asset Group and Senior Equity Strategist, responsible for portfolio management and research across global asset allocation strategies, a role he will transition off ahead of becoming global equity CIO. A replacement will be announced in due course. He will remain a member of the Federated Hermes Macro Economic Policy and PRISM® Asset Allocation committees.
"Steve brings deep experience across our equity and multi‑asset capabilities and a strong understanding of our investment platform," said John Fisher, Chairman of Federated Advisory Companies, the Federated Hermes business unit that oversees the firm's investment management areas. "His appointment reflects successful execution of our long-established succession plan, the strength of our internal talent and our continued focus on investment discipline and seeking long‑term outperformance for our clients."
Steve Auth's tenure as CIO was marked by the development of the firm's equities investment structure, including the establishment of centers of excellence across strategies and geographies, enhanced proprietary research and portfolio risk management, and the continued growth of the platform. Under his leadership, the equities franchise expanded significantly in scale and global reach, managing $100.8 billion of client assets as of March 31, 2026.
Auth and Chiavarone will undertake an orderly transition of responsibilities between today and Sept. 1, 2026. Under Steve Chiavarone's leadership, the Global Equities group will continue to operate with the same investment principles, collaborative culture and long‑term focus that clients and intermediary customers have come to expect.
Federated Hermes' Global Equities group manages investor assets across equity, alternative, and multi‑asset strategies offered through mutual funds, exchange‑traded funds (ETFs), collective investment funds (CITs), institutional separate accounts, separately managed accounts (SMAs), and UCITS funds. The global equity investment organization comprises 156 professionals, with an average of 19 years of investment experience and 12 years at Federated Hermes.
About Federated Hermes
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active, responsible investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
# # #
Certain statements in this press release, such as those relating to succession plans, retirement date, effective dates, and the ability to maintain investment processes, may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission and in each fund's registration statement (e.g., prospectus and statement of additional information). As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Pittsburgh, Federated Hermes (FHI - Free Report) is a Finance stock that has seen a price change of 4.36% so far this year. The one of the nation's largest managers of money market funds is currently shelling out a dividend of $0.34 per share, with a dividend yield of 2.5%. This compares to the Financial - Investment Management industry's yield of 2.61% and the S&P 500's yield of 1.43%.
Looking at dividend growth, the company's current annualized dividend of $1.36 is up 2.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FHI expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.08 per share, which represents a year-over-year growth rate of 2.01%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Federated Hermes Premier Municipal Income Fund (NYSE: FMN) has declared a dividend. The fund seeks to provide investors with current dividend income that is exempt from regular federal income tax. In addition, this fund features income exempt from the federal alternative minimum tax (AMT).
Tax-Free Dividend Per Share
Record Date:
May 22, 2026
Ex-Dividend Date:
May 22, 2026
Payable Date:
June 1, 2026
Amount
Change From Previous Month
$0.0450
$0.0000
Investors can view additional portfolio information in the Products section of FederatedHermes.com/us.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active, responsible investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
, /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced that monthly fund composition and performance data for Federated Hermes Premier Municipal Income Fund (NYSE: FMN) as of April 30, 2026, is now available in the Products section of FederatedHermes.com/us. To order hard copies of this data or to be placed on a mailing list, call 800-245-0242 x5587538, email [email protected] or write to Federated Hermes, 1001 Liberty Avenue, Floor 23, Pittsburgh, PA 15222.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active, responsible investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
My 'Buy' rating for Federated Hermes (FHI) remains intact, after assessing the stock's future growth and diversification potential. FHI hired Kevin Barr from BNY to head its digital asset arm; this business's outlook is positive with expectations of a rising institutional adoption rate for tokenized money market funds. Internal promotions in equities and fixed income ensure leadership continuity and support the firm's push for a more balanced asset mix.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.56; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.10 per share. FHI boasts an average earnings surprise of +14%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, FHI should be on investors' short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Federated Hermes (FHI - Free Report) is headquartered in Pittsburgh, and is in the Finance sector. The stock has seen a price change of 5.26% since the start of the year. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 2.77%. In comparison, the Financial - Investment Management industry's yield is 2.92%, while the S&P 500's yield is 1.42%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for FHI for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.10 per share, representing a year-over-year earnings growth rate of 2.41%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Schneider Downs Wealth Management Advisors increased its position in Federated Hermes (FHI +1.05%) during the first quarter, acquiring an estimated $3.56 million in shares based on average quarterly pricing, according to a May 14, 2026, SEC filing.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 14, 2026, Schneider Downs Wealth Management increased its holdings in Federated Hermes by 65,025 shares during the first quarter. The estimated value of these purchases was $3.56 million, based on the mean closing price for the quarter. The quarter-end value of the position rose by $16.04 million, reflecting both the additional shares and market movement.
What else to knowThis buy brought the Federated Hermes stake to 17% of Schneider Downs Wealth Management Advisors, LP's 13F reportable AUM as of March 31, 2026.Top holdings after the filing:NYSE:FHI: $154.70 million (17.1% of AUM)NYSEMKT:SPDW: $82.39 million (9.1% of AUM)NYSEMKT:VO: $70.65 million (7.8% of AUM)NYSEMKT:MMIT: $62.18 million (6.9% of AUM)NYSEMKT:SCHG: $47.79 million (5.3% of AUM)As of Friday, shares of Federated Hermes were priced at $56.06, up 32% over the past year and outperforming the S&P 500’s roughly 28% gain in the same period.Company OverviewMetricValuePrice (as of Friday)$56.06Market Capitalization$4.3 billionRevenue (TTM)$1.86 billionNet Income (TTM)$398.54 millionCompany SnapshotFederated Hermes, Inc. offers asset management services, including equity, fixed income, balanced, and money market mutual funds, as well as separate account management for institutional and individual investors.The company generates revenue primarily through management fees and advisory services, leveraging both fundamental and quantitative investment strategies across global markets.Its primary clients include individuals, high net worth investors, institutional clients (such as pension funds and government entities), and registered investment advisors.Federated Hermes, Inc. is a leading asset management holding company with a diversified suite of investment products and a global client base. The firm’s scale and expertise in both active and quantitative investment strategies underpin its competitive position in the asset management industry. Consistent profitability and a stable revenue stream from management fees provide a resilient business model.
What this transaction means for investorsThis purchase looks like a vote of confidence in a business Schneider Downs already knows well. What's particularly interesting is that Federated Hermes stands as the firm's largest disclosed position, ahead of a lineup otherwise dominated by ETFs and diversified market exposures. That concentration suggests the wealth manager sees something attractive in owning the asset manager itself, not just its products.
The timing makes sense. Federated Hermes recently reported record assets under management of $907.1 billion, including a record $684.7 billion in money market assets and a record $100.8 billion in equity assets. Revenue climbed 13% year over year to $479 million as higher money market and equity balances boosted fee generation. CEO J. Christopher Donahue highlighted record gross sales and positive equity fund flows, and the company also raised its quarterly dividend by nearly 12% and repurchased $66 million of stock during the quarter.
Federated benefits when investors park cash in money market funds, but it is also seeing renewed momentum in higher-fee equity strategies. If interest rates remain elevated and asset gathering continues, the company could have multiple paths to growth while returning capital through dividends and buybacks.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Mid-Cap ETF. The Motley Fool has a disclosure policy.
Federated Hermes Money Market Management Digital Treasury Fund is structured to meet reserve and liquidity requirements supporting collateral management for payment-stablecoin issuers Builds on 50-year legacy of money market innovation , /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today introduced Federated Hermes Money Market Management Digital Treasury Fund–Reserve Shares (NASDAQ: OFFXX).
Federated Hermes Money Market Management Digital Treasury Fund seeks to provide current income consistent with stability of principal by investing in a portfolio of US dollar cash and US Treasury investments that mature within 93 days and overnight repurchase agreements fully collateralized by US Treasury securities. In pursuing its investment objective and implementing its investment strategies, the fund intends to comply with Rule 2a-7 under the Investment Company Act of 1940.
The fund is Federated Hermes' first product designed to satisfy the requirements for eligible reserve assets that payment-stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, which was passed in July 2025. The Act provides a regulatory framework for stablecoins, a type of digital asset, to be backed by high-quality liquid assets on a 1:1 basis. While the fund itself does not employ blockchain technology with respect to the Reserve Shares, fund shares are expected to be used primarily by participants in the broader blockchain ecosystem. Reserve Shares of the fund may be purchased and held by individuals, payment-stablecoin issuers, and institutional investors directly or through intermediaries, including intermediaries that use blockchain technology to maintain a record of share ownership for their customers. In the future, the fund may seek to employ blockchain technology to maintain a record of share ownership with respect to the Reserve Shares or additional share classes.
For more than 50 years, Federated Hermes has been a leader in money market innovation, launching the first fund to include "money market" in its name in 1974. Drawing on that experience, the fund is managed by Susan Hill, CFA, senior portfolio manager and head of government liquidity group, and John Wyda, CFA, senior portfolio manager and senior investment analyst. The firm manages a record $684.7 billion in money market assets as of March 31, 2026.
"Liquidity management is a core business of Federated Hermes and we offer one of the largest menus of targeted solutions," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "Federated Hermes is proud to advance strategic initiatives that bring together the strength of money market investments and our management expertise. As the industry continues to explore the digital space and tokenized money market offerings, we continue to vet opportunities that employ the efficiency and transparency of blockchain technology."
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $907.1 billion in assets under management as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
# # #
You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Government money market funds are not required to adopt a liquidity fee framework.
Since the fund's principal investment strategy limits its investments to eligible reserve assets in which payment stablecoin issuers are permitted to maintain under the GENIUS Act, the fund's yield may be lower than other money market funds that are permitted to invest in a wider universe of investments.
Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us at 1-800-341-7400 or visit FederatedHermes.com/us. Please carefully read the summary prospectus or the prospectus before investing.
Federated Securities Corp. is Distributor of the Federated Hermes mutual funds.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. FHI has a Momentum Style Score of B, and shares are up 2.2% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.10 per share. FHI boasts an average earnings surprise of +14%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FHI should be on investors' short list.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Pittsburgh, Federated Hermes (FHI - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 10.72%. The one of the nation's largest managers of money market funds is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.64%. This compares to the Financial - Investment Management industry's yield of 2.67% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.52 is up 14.3% from last year. Over the last 5 years, Federated Hermes has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Federated Hermes's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FHI expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.10 per share, with earnings expected to increase 2.41% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FHI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Federated Hermes (FHI - Free Report) Headquartered in Pittsburgh, PA, Federated Hermes, Inc. is a global asset manager with $907.1 billion in AUM as of March 31, 2026. It was formed from the merger between Federated Investors and Hermes Investment Management.
FHI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.24; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $5.10 per share. FHI boasts an average earnings surprise of +14%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, FHI should be on investors' short list.
