Monthly Distribution Declarations by John Hancock Funds

Monthly Distribution Announcements from John Hancock Funds

John Hancock closed-end funds have recently declared their monthly distributions, making it a significant update for investors following their performance. The transparency in the distribution process allows stakeholders to plan their investments more effectively as they receive returns on their investment based on the fund's performance.

Details of the Declared Distributions

This month's distributions were officially declared on January 2, 2025, with payments arranged for the end of the month. The ministry of finance along with finance-related institutions promotes the importance of these announcements, as they significantly affect investment planning.

Understanding the timeline for these distributions is crucial for potential and current investors. The ex-date has been set for January 13, 2025, which will be an important date for shareholders. Furthermore, the record date is also scheduled for January 13, 2025, meaning that anyone on record for ownership of the shares on or before that date will be eligible for the distribution.

Set for January 31, 2025, the payment date signifies when shareholders will actually see these distributions reflected in their accounts, which is a positive aspect for many looking to enhance their income streams.

Distribution Breakdown

Here's a quick look at the current distributions declared by some of the key funds:

Preferred Income Fund II (HPF)

This fund announced a distribution of $0.1235 per share, maintaining its commitment to providing consistent returns to its investors. The current market price as of the end of the previous year was noted to be $16.55, translating to an annualized distribution rate of 8.95%.

Preferred Income Fund III (HPS)

Declaring a $0.1100 per share distribution, the Preferred Income Fund III has shown a steady commitment to its shareholders. Priced at $15.03, this fund offers an annualized distribution rate of 8.78%, ensuring that investors remain focused on their returns.

Premium Dividend Fund (PDT)

This fund specified a monthly distribution of $0.0825 per share. Market price on December 31, 2024, indicated $12.74, providing a favorable annualized distribution rate of 7.77%.

Tax-Advantaged Dividend Income Fund (HTD)

With a monthly distribution set at $0.1380, the Tax-Advantaged Dividend Income Fund aims to ensure its investors see a solid return on their investment. The market value as of the end of the previous year stood at $22.02, resulting in an annualized distribution rate of 7.52%.

Managed Distribution Plans Overview

Many of these funds operate under managed distribution plans designed to facilitate consistent cash flow for investors. For instance, the Premium Dividend Fund follows the PDT Plan, which allows users to receive regular monthly distributions of $0.0825 per share. Similarly, the Tax-Advantaged Dividend Income Fund adheres to the HTD Plan, granting shareholders a monthly distribution of $0.1380 per share.

These plans essentially enable the protection against tax incursions while providing investors with predictable returns, positioning the funds as a reliable choice for income-focused investors.

Importance of Understanding Distributions

Steady distributions not only reflect the financial health of a fund but also reassure investors that their investments are actively managed to optimize returns. Investors ought to note that distributions under these plans might sometimes include a return of capital, which is crucial for planning tax liabilities correctly. The process entails filing a Form 1099-DIV at the end of the year to inform investors about how to report their distributions on federal tax returns.

This clarity is essential, especially as not all funds may consist solely of net investment income, and a portion may come from capital, which differs from standard income returns.

About John Hancock Investment Management

As part of Manulife Investment Management, John Hancock Investment Management leads the industry with its multi-manager approach to investment management. They strive to blend their in-house expertise with an expansive network of specialized asset managers to offer diversified investment options to meet a variety of investor needs.

Frequently Asked Questions

What are monthly distributions?

Monthly distributions are periodic payments made to shareholders based on the performance of investment funds.

When will the next payment be made?

The next payment is set for January 31, 2025, for the declared distributions.

What is the significance of the ex-date?

The ex-date determines which shareholders qualify to receive the upcoming distribution; ownership must be established before this date.

How are these distributions taxed?

Distributions may be subject to federal income tax, and it's essential for investors to file a Form 1099-DIV for accurate reporting.

Can distributions vary from month to month?

Yes, the amount of distributions can change based on the fund’s earnings and strategic decisions taken by its board.

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