FDV cuts monthly dividend 47.3% to $0.039 per share

Federated Hermes U.S. Strategic Dividend ETF (FDV) has announced a reduced monthly dividend of $0.0390 per share, down 47.3% from the previous payment of $0.0740. The ex-dividend date for the new payment is August 31, 2026. This marks a significant decrease for income-focused investors in the ETF.

The numbers

The new monthly rate translates to an annualized payout of $0.468 per share, based on the current price of $33.43, implying a forward yield of approximately 1.40% (calculated as $0.468 / $33.43). In contrast, the trailing twelve-month (TTM) dividend per share stands at $0.9030, giving a TTM yield of 2.70%. Recent monthly payments have fluctuated: March 2026 paid $0.096, April $0.046, May $0.084, June $0.099, and July $0.074. The ETF has a record of only one consecutive year of dividend increases, and its 5-year dividend CAGR is not available. The full dividend history shows the variability in payments.

What it means for income investors

For an investor holding 100 shares of FDV, the new monthly payment of $0.0390 per share would yield $3.90 per month, or $46.80 annually, down from the previous monthly $7.40 ($88.80 annually). This cut reduces the annual income from 100 shares by approximately $42.00. Investors should note that the ex-dividend date of August 31, 2026, means shareholders must own the ETF by August 28, 2026, to receive the upcoming payment. The reduction may affect income planning for those relying on consistent monthly distributions.

Reporting based on: DividendSmart market data. Figures verified against market data where available.