Federated Hermes Introduces Active ETF Aiming for High Monthly Payouts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 08 2025
0mins
Should l Buy FHI?
Source: Newsfilter
Introduction of Enhanced Income ETF: Federated Hermes has launched the Enhanced Income ETF (CBOE: PAYR), aimed at providing consistent monthly cash flow and capital appreciation through high-dividend-paying stocks and an options overlay strategy.
Target Audience and Management Team: The ETF is designed for income-oriented investors, particularly those nearing retirement, and is managed by experienced investment teams from Federated Hermes, emphasizing risk management and diversification.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FHI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FHI
Wall Street analysts forecast FHI stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 55.580
Low
51.00
Averages
53.75
High
56.00
Current: 55.580
Low
51.00
Averages
53.75
High
56.00
About FHI
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets, and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 176 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations, and retirement plans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Federated Hermes Appoints New Chief Investment Officer
- Executive Transition: Federated Hermes announced that Steve Chiavarone will become Chief Investment Officer for Global Equities effective September 1, 2026, succeeding Steve Auth, who managed $100.8 billion in client assets during his 26-year tenure, reflecting the firm's stability and continuity in executive succession.
- Investment Management Responsibilities: As CIO for Global Equities, Chiavarone will oversee investment processes and portfolio performance, ensuring consistency and efficiency across diverse investment products, thereby enhancing client trust and improving market competitiveness.
- Rich Team Experience: With 19 years in Federated Hermes' Global Equities Group and 21 years of investment experience, Chiavarone's extensive background will help maintain the firm's commitment to investment discipline and long-term outperformance, further solidifying its market position.
- Strategic Continuity: Under Chiavarone's leadership, the Global Equities team will continue to uphold existing investment principles and collaborative culture, ensuring that client and intermediary expectations are met, thus driving the firm's sustained growth in the global market.
See More
Federated Hermes Reports Record AUM and Equity Sales in Q1 2026
- Asset Management Innovation: Federated Hermes achieved a record $907 billion in assets under management in Q1 2026, with equity assets at $101 billion and money market assets at $685 billion, demonstrating the company's strong performance and growth potential in the market.
- Sales Performance Breakthrough: The firm reported gross equity sales of $9.1 billion in Q1, a record high, with MDT equity and market-neutral strategies generating $5.8 billion in gross sales and over $3.5 billion in net sales, indicating robust demand and market recognition for its investment products.
- Future Outlook: The company anticipates approximately $1.4 billion in net equity redemptions in Q2, primarily due to a client's decision to internalize management of these assets, which is not performance-driven, highlighting the complexities of market dynamics and client behavior changes.
- Capital Return Strategy: In Q1, the firm repurchased 1.2 million shares for $66 million and declared a dividend of $0.38, an increase of nearly 12% from the previous quarter, reflecting the company's commitment to shareholders and ongoing financial health.
See More
Vista Investment Partners Acquires Stake in Federated Hermes
- New Position: Vista Investment Partners II initiated a new stake in Federated Hermes by acquiring 54,815 shares in Q1 2026, with an estimated transaction value of $3 million, indicating strong confidence in the company's prospects.
- Value Appreciation: As of March 31, 2026, the value of Federated Hermes' stake reached $3.11 million, reflecting both the impact of share acquisition and price appreciation, suggesting optimistic expectations from investors regarding future performance.
- Strong Market Performance: As of April 22, 2026, Federated Hermes shares were priced at $57.37, marking a 58.5% increase year-over-year, outperforming the S&P 500 by 23.5 percentage points, highlighting its robust growth potential in the asset management sector.
- Earnings Outlook: Analysts predict that Federated Hermes' upcoming earnings report will show higher revenue and earnings per share (EPS), which could further attract investors and strengthen its market position.
See More
Federated Hermes Expected to Announce Dividend Increase
- Dividend Growth Trend: Federated Hermes is expected to announce a dividend increase, continuing its three-year streak of regular growth, with analysts forecasting an annual dividend of approximately $1.39 per share, translating to a quarterly dividend of about $0.3475, which represents a 2.2% increase from the current $0.34 payout.
- Historical Payment Record: The company last paid a dividend of $0.34 per share, yielding 2.40% annually, and previously increased its dividend from $0.31 to $0.34 in April last year, marking a significant 9.7% growth, showcasing its commitment to returning value to shareholders.
- Dividend Growth Rate: Over the past five years, Federated Hermes has achieved a dividend growth rate of approximately 4.72%, with a current payout ratio of 26.65%, indicating its ability to reward shareholders while maintaining profitability.
- Dividend Quality Ratings: The company holds a B+ rating for dividend safety, an A+ rating for dividend growth, a C- rating for yield, and a B rating for consistency, reflecting its robustness and reliability in dividend payments.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, available on their website, enhancing transparency and client trust.
- Asset Management Scale: As of December 31, 2025, Federated Hermes managed assets totaling $902.6 billion, underscoring its leadership in active investment management and attracting more institutional investor interest.
- Diverse Client Base: The firm provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, indicating its strong influence in a diversified market.
- Global Employee Network: With over 2,000 employees across multiple offices worldwide, Federated Hermes ensures efficient service and support for clients, further solidifying its market position.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, aimed at providing investors with transparent information to support their investment decisions.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages a total of $902.6 billion in assets, demonstrating its strong capabilities and market position in active investment management.
- Diverse Client Base: The company provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, insurance companies, foundations, and banks, reflecting its significant influence in the global market.
- Global Employee Network: Federated Hermes has multiple offices worldwide, including London, New York, and Boston, with a workforce exceeding 2,000 employees, indicating its extensive presence and resource allocation in the global investment management industry.
See More
Federated Hermes Appoints New Chief Investment Officer
- Executive Transition: Federated Hermes announced that Steve Chiavarone will become Chief Investment Officer for Global Equities effective September 1, 2026, succeeding Steve Auth, who managed $100.8 billion in client assets during his 26-year tenure, reflecting the firm's stability and continuity in executive succession.
- Investment Management Responsibilities: As CIO for Global Equities, Chiavarone will oversee investment processes and portfolio performance, ensuring consistency and efficiency across diverse investment products, thereby enhancing client trust and improving market competitiveness.
- Rich Team Experience: With 19 years in Federated Hermes' Global Equities Group and 21 years of investment experience, Chiavarone's extensive background will help maintain the firm's commitment to investment discipline and long-term outperformance, further solidifying its market position.
- Strategic Continuity: Under Chiavarone's leadership, the Global Equities team will continue to uphold existing investment principles and collaborative culture, ensuring that client and intermediary expectations are met, thus driving the firm's sustained growth in the global market.
See More
Federated Hermes Reports Record AUM and Equity Sales in Q1 2026
- Asset Management Innovation: Federated Hermes achieved a record $907 billion in assets under management in Q1 2026, with equity assets at $101 billion and money market assets at $685 billion, demonstrating the company's strong performance and growth potential in the market.
- Sales Performance Breakthrough: The firm reported gross equity sales of $9.1 billion in Q1, a record high, with MDT equity and market-neutral strategies generating $5.8 billion in gross sales and over $3.5 billion in net sales, indicating robust demand and market recognition for its investment products.
- Future Outlook: The company anticipates approximately $1.4 billion in net equity redemptions in Q2, primarily due to a client's decision to internalize management of these assets, which is not performance-driven, highlighting the complexities of market dynamics and client behavior changes.
- Capital Return Strategy: In Q1, the firm repurchased 1.2 million shares for $66 million and declared a dividend of $0.38, an increase of nearly 12% from the previous quarter, reflecting the company's commitment to shareholders and ongoing financial health.
See More
Vista Investment Partners Acquires Stake in Federated Hermes
- New Position: Vista Investment Partners II initiated a new stake in Federated Hermes by acquiring 54,815 shares in Q1 2026, with an estimated transaction value of $3 million, indicating strong confidence in the company's prospects.
- Value Appreciation: As of March 31, 2026, the value of Federated Hermes' stake reached $3.11 million, reflecting both the impact of share acquisition and price appreciation, suggesting optimistic expectations from investors regarding future performance.
- Strong Market Performance: As of April 22, 2026, Federated Hermes shares were priced at $57.37, marking a 58.5% increase year-over-year, outperforming the S&P 500 by 23.5 percentage points, highlighting its robust growth potential in the asset management sector.
- Earnings Outlook: Analysts predict that Federated Hermes' upcoming earnings report will show higher revenue and earnings per share (EPS), which could further attract investors and strengthen its market position.
See More
Federated Hermes Expected to Announce Dividend Increase
- Dividend Growth Trend: Federated Hermes is expected to announce a dividend increase, continuing its three-year streak of regular growth, with analysts forecasting an annual dividend of approximately $1.39 per share, translating to a quarterly dividend of about $0.3475, which represents a 2.2% increase from the current $0.34 payout.
- Historical Payment Record: The company last paid a dividend of $0.34 per share, yielding 2.40% annually, and previously increased its dividend from $0.31 to $0.34 in April last year, marking a significant 9.7% growth, showcasing its commitment to returning value to shareholders.
- Dividend Growth Rate: Over the past five years, Federated Hermes has achieved a dividend growth rate of approximately 4.72%, with a current payout ratio of 26.65%, indicating its ability to reward shareholders while maintaining profitability.
- Dividend Quality Ratings: The company holds a B+ rating for dividend safety, an A+ rating for dividend growth, a C- rating for yield, and a B rating for consistency, reflecting its robustness and reliability in dividend payments.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, available on their website, enhancing transparency and client trust.
- Asset Management Scale: As of December 31, 2025, Federated Hermes managed assets totaling $902.6 billion, underscoring its leadership in active investment management and attracting more institutional investor interest.
- Diverse Client Base: The firm provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, indicating its strong influence in a diversified market.
- Global Employee Network: With over 2,000 employees across multiple offices worldwide, Federated Hermes ensures efficient service and support for clients, further solidifying its market position.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, aimed at providing investors with transparent information to support their investment decisions.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages a total of $902.6 billion in assets, demonstrating its strong capabilities and market position in active investment management.
- Diverse Client Base: The company provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, insurance companies, foundations, and banks, reflecting its significant influence in the global market.
- Global Employee Network: Federated Hermes has multiple offices worldwide, including London, New York, and Boston, with a workforce exceeding 2,000 employees, indicating its extensive presence and resource allocation in the global investment management industry.
See More
