With bond yields now at levels not seen for years, the landscape for income products is as competitive as ever. High dividend stocks provide a complement to bonds that can diversify an investor’s yield-generating tool set with potential advantages over bonds.
In the upcoming webcast, Why You Should Consider Allocating to High Dividend Stocks in 2023, Brandon Clark, director of ETF Business at Federated Hermes; Emory Redd, vice president of Portfolio Construction Solutions Group at Federated Hermes; and Debbie Bickerstaff, senior vice president and portfolio manager at Federated Hermes, will discuss their views on the advantages of high dividend-paying stocks, the role dividend-oriented strategies can play in asset allocation, and the potential opportunity in equity income over the next decade.
Specifically, Federated Hermes recently launched the Federated Hermes U.S. Strategic Dividend ETF (NYSE Arca: FDV). The new actively managed ETF seeks income and long-term capital appreciation by investing in U.S. companies with dividend yields above the S&P 500 Index average.
“Our security selection process has been demonstrated over several market cycles since 2001,” according to Federated Hermes.
“We focus on high-quality companies with strong financial condition, higher dividend yields than the S&P 500 Index average, dividend growth potential, a history of strong performance throughout market cycles.”
The strategy invests in lower-volatility, income-producing U.S. companies that are in strong financial condition and have demonstrated resilience through business and economic cycles. The ETF provides access to the 40–60 U.S. companies identified by the investment team’s fundamental research process as possessing the potential to sustain and grow their dividends.
“Multiple risk management tools help ensure that portfolios are positioned as intended and that the highest conviction ideas are aligned with mandates. These tools include an independent risk management division, risk managers embedded in investment teams, and regular meetings with the equity CIO,” according to Federated Hermes.
Financial advisors who are interested in learning more about high dividend stocks can register for the Monday, December 19 webcast here.