Federated Hermes Strategic Value Dividend Fund Class A (SVAAX)

Overview

This investment fund focuses on achieving its goal by concentrating on high dividend-paying common stocks that possess the potential for dividend growth. The Adviser’s methodology for selecting securities emphasizes the importance of a balanced mix of dividend yield and the potential for dividend growth over time, guided by a thorough assessment of fundamental attributes. These attributes include, but are not limited to, the strength of the balance sheet, earnings growth, and the durability of cash flows. Additionally, the fund is open to employing derivative contracts, such as forward contracts, to either manage or hedge against currency exposure, showcasing a flexible approach to achieving its investment objective while seeking to mitigate potential risks associated with currency fluctuations.

Products and Services

The fund offers a targeted investment approach with services designed to cater to investors interested in dividend income and growth, detailed as follows:

• High Dividend-Paying Stocks:

  This product focuses on common stocks that not only offer high dividend yields but also have the potential for dividend growth. It is geared towards investors looking for income-generating investments that also offer the opportunity for capital appreciation.

• Dividend Growth Potential:

  With an emphasis on dividend growth potential, the fund targets stocks that are expected to increase their dividend payouts over time. This approach aims to provide investors with a growing income stream, potentially leading to enhanced total returns.

• Fundamental Criteria Review:

  The security selection process involves a comprehensive review of key fundamental indicators such as balance sheet strength, earnings growth, and cash flow durability. This rigorous analysis ensures that investments are not only attractive in terms of dividend yield and growth but are also financially sound and sustainable in the long term.

• Derivative Contracts for Currency Exposure Management:

  Recognizing the impact of currency fluctuations on international investments, the fund may utilize derivative contracts, such as forward contracts, to manage or hedge currency exposure. This strategy is intended to protect the fund’s returns from adverse currency movements, thereby reducing potential risks for investors.