Federated Hermes Strategic Value Dividend Fund Institutional Shares (SVAIX)

Overview

The fund is established with the primary objective of generating income for its investors by focusing on investments in high dividend-paying common stocks that exhibit potential for dividend growth. The investment strategy involves a meticulous security selection process, guided by the Adviser, which lays emphasis on identifying stocks that offer an appealing mix of dividend yield and the potential for dividend growth over time. This process is supported by a thorough evaluation of fundamental criteria, including but not limited to, the financial solidity of the balance sheet, the capability for earnings growth, and the sustainability of cash flows.

Products and Services

• High Dividend-Paying Common Stocks

  An integral component of the fund's investment portfolio, these are stocks selected primarily for their high dividend yield and the potential for dividend growth. By investing in such stocks, the fund aims to provide its investors with a reliable source of income, coupled with the opportunity for capital appreciation over time.

• Security Selection Process

  This process is at the core of the fund’s strategy, where stocks are prioritized based on their dividend yield and potential for growth in dividends. It involves a rigorous review of the company's fundamentals such as balance sheet strength, earnings growth potential, and the durability of cash flows, to ensure that only the most promising stocks are added to the portfolio.

• Use of Derivative Contracts

  To manage or hedge the fund's currency exposure, derivative contracts like forward contracts may be utilized. This strategy is aimed at protecting the fund’s investments from currency fluctuations, thereby reducing the risk of currency-related losses and enhancing the overall stability of the investment portfolio.