Ex-Dividend Date Insight: Federated Hermes

On January 28, 2021, Federated Hermes FHI announced shareholders can expect to receive a dividend payable on February 12, 2021. The stock will then go ex-dividend 1 business day(s) before the record date. Federated Hermes, which has a current dividend per share of $0.27, has an ex-dividend date scheduled for February 4, 2021. That equates to a dividend yield of 3.77% at current price levels.

What Is An Ex-Dividend Date?

Ex-dividend dates signal when company shares cease to trade with their current dividend payouts. There is a small intermission period before companies announce new dividends. Usually, a company's ex-dividend date falls one business day before its record date. Investors should keep this in mind when purchasing stocks because buying them on or after ex-dividend dates does not qualify them to receive the declared payment. Newly declared dividends go to shareholders who have owned that stock before the ex-dividend date. Most ex-dividend dates operate on a quarterly basis.

Federated Hermes's Dividend History

Over the past year, Federated Hermes has seen its dividend payouts remain the same and its yields trend downward. Last year on May 8, 2020 the company's payout sat at $0.27, which has returned to its value today. Federated Hermes's dividend yield last year was 4.73%, which has since decreased by 0.96%.
Companies use dividend yields in different strategic ways. Some companies may opt to not give yields altogether to reinvest in themselves. Other companies may opt to increase or decrease their yield amounts to control how their shares circulate throughout the stock market.

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