Federated Hermes Premier Municipal Income Fund (NYSE: FMN) has recently declared a tax-free dividend for its investors. This dividend provides a current source of income that is exempt from regular federal income tax. Additionally, it offers income that is exempt from the federal alternative minimum tax (AMT).
The dividend details are as follows:
– Record Date: May 23, 2024
– Ex-Dividend Date: May 22, 2024
– Payable Date: June 3, 2024
– Amount: $0.0350 per share
– Change From Previous Month: No change
Investors interested in learning more about the fund’s portfolio can find additional information in the Products section of FederatedHermes.com/us.
Federated Hermes, Inc. (NYSE: FHI) is a renowned global leader in active, responsible investment management. With assets under management totaling $778.7 billion as of March 31, 2024, the company offers investment solutions tailored to a broad range of outcomes. Their services span equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies, serving over 10,000 institutions and intermediaries worldwide.
Clients of Federated Hermes include corporations, government entities, insurance companies, foundations and endowments, banks, and broker/dealers. Headquartered in Pittsburgh, the company boasts more than 2,000 employees across various locations, including London, New York, and Boston.
To stay informed about the latest updates and to access comprehensive information about Federated Hermes, please visit FederatedHermes.com/us.
In addition to the information provided in the article, there are several notable facts and trends related to the topic of the Federated Hermes Premier Municipal Income Fund and tax-free dividends.
1. Market Trends: Municipal bond funds, such as the Federated Hermes Premier Municipal Income Fund, have gained popularity among investors seeking tax-efficient income. Municipal bonds are issued by state and local governments to fund public projects, and the interest earned from these bonds is typically exempt from federal income tax. This tax advantage makes municipal bond funds attractive for investors in higher tax brackets.
2. Forecast: The demand for tax-free income is expected to remain strong in the future as individuals and institutions continue to seek ways to minimize their tax obligations. This trend is driven by the desire for stable, predictable income in a tax-efficient manner.
3. Key Challenges: One of the challenges associated with municipal bond funds is the credit quality of the underlying bonds. Investors should carefully evaluate the creditworthiness of the municipalities issuing the bonds to mitigate the risk of default. Moreover, changes in tax policy or regulatory frameworks could impact the tax-exempt status of municipal bond income.
4. Controversies: Municipal bond funds have faced controversies in the past due to the potential for mismanagement or fraudulent activities by issuers. Investors should conduct thorough due diligence and carefully select reputable fund managers to minimize the associated risks.
Advantages of the Federated Hermes Premier Municipal Income Fund include:
– Tax-Free Dividends: The fund provides investors with tax-free income, exempt from regular federal income tax and the alternative minimum tax (AMT).
– Diversification: The fund’s portfolio includes a range of municipal bonds from different issuers, providing diversification and potentially reducing risk.
– Active Management: Federated Hermes is a renowned global leader in active, responsible investment management, suggesting that the fund benefits from their expertise and research.
Disadvantages of the fund include:
– Credit Risk: Municipal bonds are subject to credit risk, meaning that there is a possibility of default by the issuer. Investors should carefully assess the credit quality of the underlying bonds.
– Market Risk: Like all investments, the value of the fund’s shares can fluctuate based on market conditions. Investors should be aware that the value of their investment may go down as well as up.
For more information on the Federated Hermes Premier Municipal Income Fund and its portfolio, interested parties can visit the Products section of FederatedHermes.com/us.
To stay informed about the latest updates and access comprehensive information about Federated Hermes, including its investment solutions and services, individuals and institutions can visit FederatedHermes.com/us.
For a deeper understanding of municipal bond funds and tax-exempt dividends, individuals can refer to the following link to investopedia.com: Municipal Bond Fund.