Does Hermes Stock Pay Dividends?

If you’re considering investing in Hermes stock, one question you may be wondering is whether or not the company pays dividends. Dividends are a portion of a company’s profits that are distributed to shareholders as a reward for their investment. Let’s take a closer look at the situation with Hermes.

Background on Hermes

Hermes International S.A. is a French luxury goods manufacturer that specializes in leather goods, clothing, and accessories. The company was founded in 1837 and has since become an iconic brand known for its high-quality products and impeccable craftsmanship.

Does Hermes Pay Dividends?

The answer is yes – Hermes does pay dividends to its shareholders. In fact, the company has been paying dividends consistently since 2001, with the exception of 2020 due to the COVID-19 pandemic.

Hermes’ Dividend History

Here is a breakdown of Hermes’ dividend history over the past five years:

  • 2020: No dividend
  • 2019: €5 per share
  • 2018: €4.55 per share
  • 2017: €4 per share
  • 2016: €3.35 per share

As you can see, Hermes has historically paid out healthy dividends to its shareholders.

Why Does Hermes Pay Dividends?

There are several reasons why a company might choose to pay dividends. One reason is to reward shareholders for their investment in the company. By distributing profits as dividends, investors can see a return on their investment without having to sell their shares.

Another reason why companies pay dividends is to signal financial health and stability to investors. By consistently paying dividends over time, companies demonstrate that they have a reliable stream of profits and are in a strong financial position.

Conclusion

In summary, Hermes does pay dividends to its shareholders, although the company did not pay a dividend in 2020 due to the pandemic. The company has a long history of paying dividends and is known for its financial stability and reliability. If you’re considering investing in Hermes stock, the fact that the company pays dividends may be an important factor to consider.