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Federated Hermes rises 20% YTD with strong earnings and 2.4% yield amid strategic growth in equity and alternatives.

Company Fundamentals
08 Sep 2026
Seeking Alpha
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Bullish
Federated Hermes rises 20% YTD with strong earnings and 2.4% yield amid strategic growth in equity and alternatives.

Federated Hermes, Inc. has gained 20% year-to-date, supported by strong earnings and a 2.4% dividend yield. The company is shifting its focus towards higher-fee equity and alternative assets under management, with equity AUM growing 23% year-over-year. Recent mergers and acquisitions have expanded its exposure to alternatives and infrastructure by $3.2 billion. Trading at a forward P/E of 11.2x, below the sector median, Federated Hermes is positioned for 22% forward EPS growth and continues to return capital through buybacks and record dividends.

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