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Federated HermesFRA:3KC -0.96%94 5-Year Yield-on-Cost % is 2.84 as of Jul. 20, 2026, which is 29% below its 10-year median of 4.01. GuruFocus rates FRA:3KC with a GF Score™ of 94/100 and a GF Value™ of €44.32. The stock has 6 warning signs investors should review. Among 1,116 Asset Management companies, Federated Hermes ranks worse than 79.39% on this metric.
Federated Hermes's yield on cost for the quarter that ended in Mar. 2026 was 2.84.
The historical rank and industry rank for Federated Hermes's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:3KC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.79 Med: 4.01 Max: 8.3
Current: 2.84
During the past 13 years, Federated Hermes's highest Yield on Cost was 8.30. The lowest was 2.79. And the median was 4.01.
FRA:3KC's 5-Year Yield-on-Cost % is ranked worse than 79.39% of 1116
companies
in the Asset Management industry
Industry Median: 6.45
vs FRA:3KC: 2.84
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Federated Hermes 5-Year Yield-on-Cost % Related Terms
FRA:3KC vs DNP, CNS, MAIN: 5-Year Yield-on-Cost % Comparison
For the Asset Management subindustry, Federated Hermes's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Federated Hermes 5-Year Yield-on-Cost % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Federated Hermes (FRA:3KC) has a 5-Year Yield-on-Cost % of 2.84 as of Jul. 20, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Federated Hermes and its competitors. This is 29% below median its historical median of 4.01. Over the past decade, Federated Hermes' 5-Year Yield-on-Cost % has ranged from 2.79 to 8.30. According to the industry distribution chart, Federated Hermes ranks #886 out of 1116 companies in the Asset Management industry, placing it in the top 79.4%.
Is Federated Hermes' 5-Year Yield-on-Cost % too high?
Federated Hermes' current 5-Year Yield-on-Cost % of 2.84 is 29% below median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 8.30. The Asset Management industry median 5-Year Yield-on-Cost % is 6.45. Federated Hermes' value of 2.84 is 56% below this industry median. Based on the distribution chart, Federated Hermes ranks #886 out of 1116 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Federated Hermes has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' 5-Year Yield-on-Cost % compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #886 out of 1116 companies for 5-Year Yield-on-Cost %. This places Federated Hermes in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 6.45. Federated Hermes' value of 2.84 is 56% below this benchmark. Historically, Federated Hermes' own 5-Year Yield-on-Cost % has ranged from 2.79 to 8.30 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 6.45, Federated Hermes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.45, based on 1,116 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current 5-Year Yield-on-Cost % of 2.84 is 56% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current 5-Year Yield-on-Cost % is 2.84, which is 29% below median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federated Hermes stock overvalued right now?
Federated Hermes (FRA:3KC) has a current 5-Year Yield-on-Cost % of 2.84. The stock's GF Value™ is €44.32, compared to a current price of €51.50 — trading 16.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.84, which is 29% below median its 10-year median of 4.01 and 56% below the Asset Management industry median of 6.45. Federated Hermes' overall GF Score™ is 94/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current 5-Year Yield-on-Cost % is 2.84 as of Jul. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Federated Hermes (FRA:3KC) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of €51.50 is trading 16.2% above its estimated GF Value™ of €44.32.
Key valuation signals for FRA:3KC:
5-Year Yield-on-Cost %: 2.84 (29% below median its 10-year median of 4.01)
GF Value™: €44.32 vs. price of €51.50 (16.2% above fair value)
Industry Position: 56% below the Asset Management median (#886 of 1116)
No single metric tells the full story. See the FRA:3KC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federated Hermes provides asset management services for institutional and individual investors. The firm had $902.6 billion in managed assets at the end of 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (76%) funds. The firm's cash management operations are expected to generate around 55% of Federated's revenue this year, compared with 27%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
94GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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