Federated Hermes Strategic Value Dividend Fund Class C (SVACX)

Overview

This investment fund focuses on achieving its investment goals by primarily allocating its resources into high dividend-paying common stocks that have the potential for dividend growth. The strategy employed by the firm’s adviser involves a careful selection of stocks that offer a promising combination of high dividend yield and the potential for growth in those dividends over time. This selection is based on a thorough review of fundamental criteria, which includes but is not limited to, the strength of a company's balance sheet, its earnings growth, and the durability of its cash flow. Additionally, the fund may engage in the use of derivative contracts, such as forward contracts, as a means to manage or hedge against currency exposure risks.

Products and Services

The fund's products and services are designed to cater to investors looking for income-generating investments alongside potential capital appreciation through investments in dividend-paying stocks. Below are the primary offerings:

• High Dividend-Paying Common Stocks: The core of the fund’s investment strategy, focusing on stocks that not only provide high immediate yield but also have the potential for dividend growth. This serves investors seeking steady income with the prospect of income growth.
• Dividend Growth Potential Investments: Beyond merely high-yielding stocks, the fund emphasizes investments in companies showing potential for significant growth in their dividend payouts. This approach targets long-term capital appreciation as well as income.
• Comprehensive Security Selection Process: The Adviser’s method for picking securities involves an in-depth analysis of various fundamental factors such as company balance sheet strength, earnings growth, and the sustainability of cash flows. This meticulous selection process aims to ensure investments are sound and have promising prospects.
• Derivative Contracts for Currency Hedge: To mitigate the risks associated with currency fluctuations that might affect the value of its international investments, the fund may employ derivative contracts like forward contracts. This strategy is aimed at protecting the fund's returns from the adverse effects of currency volatility.