Understanding John Hancock Tax-Advantaged Dividend Fund Distributions
Overview of John Hancock Tax-Advantaged Dividend Income Fund
The John Hancock Tax-Advantaged Dividend Income Fund, referred to as HTD, is a closed-end fund managed by John Hancock Investment Management LLC. This fund aims to provide shareholders with attractive income through monthly distributions, allowing investors to benefit from a steady stream of revenue.
Distribution Announcement
The recent announcement regarding a distribution of $0.1380 per share is significant for all shareholders of HTD. This distribution will be paid to shareholders who are on record as of a specified date, reflecting the fund's managed distribution plan designed to ensure regular income for its investors.
Sources of Distribution
Shareholders will find the information concerning sources of the current distribution particularly insightful. The distribution comprises various components: net investment income, net realized capital gains, and potentially a return of capital. Understanding these elements is crucial for assessing the sustainability of the fund's payouts.
Net Investment Income
For the distribution period, a substantial portion will come from net investment income. Such income is generated from the fund's investments in various securities. It represents the primary source for covering the distributions made to shareholders.
Capital Gains
In addition to net investment income, the fund may also distribute net realized short-term and long-term capital gains. These gains result from selling securities at a profit and are an important aspect for shareholders to consider when evaluating the fund's performance.
Expected Returns and Values
It is worth noting that expected returns could also include a portion classified as a return of capital. This occurs when dividends exceed the fund's earnings, potentially impacting the overall value of investments held by shareholders. It's important for investors to understand this aspect, as it does not directly correlate with investment performance.
Financial Information and Future Outlook
As of the last reporting period, the fund has shown promising performance metrics, including an average annual total return over the past five years. This promising outlook enhances the attractiveness of HTD for income-focused investors looking for reliable yield.
Contact and Support
For those seeking further information about their investments in the John Hancock Tax-Advantaged Dividend Income Fund, it's recommended to reach out to a financial professional. Alternatively, investors can contact the fund’s information line for personalized assistance regarding their accounts and investment strategies.
Frequently Asked Questions
What is the John Hancock Tax-Advantaged Dividend Income Fund?
HTD is a closed-end fund that aims to provide income through distributions, primarily from net investment income and capital gains.
How often does the fund pay out distributions?
The fund is designed to make monthly distributions to its shareholders.
What factors determine the distribution amount?
Distributions are determined by net investment income, realized capital gains, and other sources as outlined by the fund's distribution plan.
Why is a portion of distributions considered a return of capital?
A return of capital may occur if the distributions exceed the income generated by the fund, indicating that some of your initial investment is returned to you.
How can I get more information about my investment?
Investors can consult their financial advisors or contact the fund directly for more specific inquiries related to their accounts.
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