Understanding John Hancock's Monthly Distribution Strategy
Overview of John Hancock Tax-Advantaged Dividend Income Fund
The John Hancock Tax-Advantaged Dividend Income Fund is a prominent closed-end fund known for its monthly distribution strategy. The Fund, advised by John Hancock Investment Management LLC, aims to provide shareholders with a sustainable income while managing investment risks effectively. This article delves into the Fund's current distribution details, performance metrics, and overall investment strategy.
Key Distribution Details
Monthly Distributions Explained
The Fund has declared a monthly distribution of $0.1380 per share, continuing its commitment to provide consistent returns to shareholders. This monthly payout is part of the Fund's managed distribution plan, designed to ensure investors receive predictable income streams. The upcoming distribution is crucial for shareholders, particularly those relying on regular income from their investments.
Understanding the Sources of Distribution
The sources of these distributions are derived from several elements, including net investment income, net realized short-term capital gains, net realized long-term capital gains, and returns of capital. For the distribution period, the estimated breakdown is as follows:
1. **Net Investment Income:** $0.1289 (93% of the current distribution) 2. **Net Realized Short-Term Capital Gains:** $0.0000 (0% of the current distribution) 3. **Net Realized Long-Term Capital Gains:** $0.0000 (0% of the current distribution) 4. **Return of Capital:** $0.0091 (7% of the current distribution)
Considering that a portion of the distribution may include a return of capital, it's important to note that this doesn't necessarily reflect the Fund’s performance, rather it simply indicates how the funds are being managed and distributed.
Performance Metrics
Annual Returns and Investment Performance
Investors often inquire about the performance of their assets. The average annual total return for the John Hancock Fund over the five years leading up to the end of January 2025 was approximately 5.06%. However, it's pivotal for investors to understand that past performance is not indicative of future results. Hence, while the historical performance provides a starting point for evaluating investment potential, each shareholder should do their due diligence.
Furthermore, the annualized current distribution rate expressed as a percentage of NAV as of January 31, 2025, stands at 6.83%. This metric is vital for assessing the value generated from investments relative to the net asset value, easing the decision-making process for shareholders.
Impact of Distributions on Taxation
Tax Reporting Considerations
The Fund's reported distributions are estimates and may not align with the actual taxable amounts. Investors can expect to receive a Form 1099-DIV which will delineate how to report the distributions for tax purposes. It is advisable for shareholders to consult with financial advisors to best navigate the complexities surrounding taxes on investment income.
Contact and Additional Information
For inquiries or more comprehensive information, shareholders and potential investors can reach out to John Hancock Investment Management's Closed-End Fund Information Line. They can call the dedicated number to seek assistance:
**Contact Information:** - **General Inquiries**: 1-800-843-0090 (Monday through Friday from 8:00 a.m. to 7:00 p.m. Eastern Time) - **Investor Questions**: (800) 843-0090
Being informed about the operations of the John Hancock Tax-Advantaged Dividend Income Fund enables shareholders to make better investment decisions and understand their financial trajectories better. Through effective communication and detailed insights, John Hancock continues to uphold transparency in its operation as a trusted investment management firm.
Frequently Asked Questions
What is the monthly distribution amount for the Fund?
The Fund has declared a monthly distribution of $0.1380 per share.
How are the sources of distribution categorized?
The sources are typically categorized into net investment income, short and long-term capital gains, and return of capital.
What is the average annual return for the Fund?
As of January 31, 2025, the average annual total return for the last five years is approximately 5.06%.
How should shareholders report their distributions for tax purposes?
Shareholders will receive a Form 1099-DIV that details how to report distributions for federal income tax purposes.
Who can I contact for more information about the Fund?
You can contact John Hancock Investment Management at 1-800-843-0090 for further information and assistance.
About The Author
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