Daniel Peris, Portfolio Manager of the Strategic Value Dividend Fund at Federated Hermes joined Keith Black, Managing Director, RIA Channel to discuss his outlook on dividend growth, return opportunities and market challenges.
Dividend-focused strategies have had a steady year in 2022, relative to the volatility of the broader market.
While yield has been difficult to come by in the last decade, the biggest challenge in the current environment is actually identifying opportunities for dividend growth, explains Peris. “Seeking to deliver dividend growth over time from a high yielding portfolio is where we spend 90 to 95% of our time,” says Peris on the actively managed strategy. While rising rates and inflation are certainly contributing factors, the most influential headwind for dividend growth has been the strength of the U.S. dollar.
The Federated Hermes Strategic Value Dividend Fund seeks income and long-term capital appreciation primarily by investing in high dividend paying stocks with dividend growth potential. The portfolio offers diversified exposure to the market with a bias toward traditional dividend-paying sectors like consumer staples, utilities, pharma and energy.
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Federated Hermes – Strategic Value Dividend Fund
Disclosures
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 or view the prospectus provided on the FederatedInvestors.com website. Please carefully read the summary prospectus or prospectus before investing.
International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards.
There are no guarantees that dividend-paying stocks will continue to pay dividends. In addition, dividend-paying stocks may not experience the same capital appreciation potential as non-dividend-paying stocks.
Because the fund may allocate relatively more assets to certain industry sectors than others, the fund’s performance may be more susceptible to any developments which affect those sectors emphasized by the fund.
Mutual funds are subject to risks and fluctuate in value.
Current and future portfolio holdings are subject to risk.
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