Understanding the Distribution Sources for HTD Shareholders
John Hancock Tax-Advantaged Dividend Income Fund Overview
In a significant announcement impacting numerous investors, the John Hancock Tax-Advantaged Dividend Income Fund has outlined the sources of its recent distribution. This closed-end fund, which trades on the NYSE under the ticker symbol HTD, is managed by John Hancock Investment Management LLC. The firm’s robust financial strategy continues to resonate well with its investors, offering a stable investment opportunity.
Distribution Announcement
The Fund has declared a monthly distribution amount of $0.1380 per share. This distribution is designed to benefit all shareholders who are on record as of an important date established by the fund's management. The motivations behind these distributions are grounded in well-thought-out financial principles, aiming to provide consistent income to shareholders through diverse investment strategies.
Understanding the Distribution Sources
One of the crucial aspects of any distribution is its source. In this case, the sources for the June distribution are diversified and include net investment income, net realized capital gains, and a potential return of capital. Let's delve into these categories further:
Net Investment Income
The most significant portion of the distributions is derived from net investment income, which for this period accounts for approximately 79% of the current distribution. This income is primarily generated from the Fund’s portfolio of investments, which are continuously managed for optimal performance.
Net Realized Capital Gains
Net realized capital gains contribute to about 3% of the distribution. While this portion is smaller compared to net investment income, it reflects the Fund's success in generating profits from selling assets over time. The management of these gains is crucial for the sustainability of future distributions.
Return of Capital
Lastly, a return of capital plays a role, comprising approximately 18% of the total distribution amount. While it may sound concerning, a return of capital is not inherently negative; rather, it can signify prudent financial management where the Fund returns some of the invested capital back to shareholders. This returned capital does not equate to generated income and needs careful consideration by investors.
Implications of Distribution Changes
Investors should recognize that the announced distributions are estimates and may change based on various factors affecting the Fund’s investments, including market conditions and the financial performance of underlying assets. This adaptability often reflects the Fund’s management strategies and commitment to providing value to its shareholders.
Investment Outlook with HTD
As we reflect on these distribution figures, it’s essential to remember that ongoing investment in HTD involves understanding both the opportunities and risks. Notably, the Fund has delivered positive average annual total returns, showcasing its historical strength and commitment to returning value to its investors. This consistent performance builds confidence in its managed distribution plan.
Contact Information for Shareholders
For shareholders seeking further clarification or having inquiries about their investments, the Manulife John Hancock Closed-End Fund Information Line is available for support. Reachable at (800) 843-0090, representatives are dedicated to providing necessary assistance.
Frequently Asked Questions
What is the amount of the latest distribution for HTD shareholders?
The latest distribution for HTD shareholders is $0.1380 per share.
What are the main sources of the distribution?
The main sources include net investment income, net realized capital gains, and a return of capital.
How is net investment income calculated?
Net investment income is derived from the total returns produced by the Fund’s assets, after expenses.
Can a return of capital affect my tax obligations?
A return of capital may not be viewed as income, but it can have tax implications depending on your overall investment situation.
Where can I get more information about my investment in HTD?
Investors can call the Manulife John Hancock Closed-End Fund Information Line at (800) 843-0090 for detailed inquiries.
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