BOSTON, Dec. 2, 2013 /PRNewswire/ -- John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) and John Hancock Premium Dividend Fund (NYSE: PDT) (collectively the "Funds"), closed-end funds advised by John Hancock Advisers, LLC, today announced increases in their monthly distribution amounts. John Hancock Premium Dividend Fund also announced a short-term and long-term capital gain distribution.
Increased Monthly Distributions (HTD and PDT)
John Hancock Tax-Advantaged Dividend Income Fund increased its monthly distribution amount from $0.0985 per share to $0.1100 per share, an 11.7% increase. This increased distribution amount equates to a distribution rate of 6.55% at the Fund's net asset value ("NAV") of $20.16 and a distribution rate of 7.47% at the Fund's market price of $17.68, as of November 29, 2013.
John Hancock Premium Dividend Fund increased its monthly distribution amount from $0.0755 per share to $0.0800 per share, a 6% increase. This increased distribution amount equates to a distribution rate of 7.00% at the Fund's NAV of $13.72 and a distribution rate of 7.98% at the Fund's market price of $12.03, as of November 29, 2013.
The increased distribution amount for each Fund is expected to be paid on December 19, 2013 to holders of record on December 12, 2013. The ex-dividend date is December 10, 2013.
Over the past year there have been several developments that have enabled the Funds to increase their distributions, including:
- an increase in the dividend yield generated by each Fund's portfolio
- an increase in the ownership of preferred securities, which generally tend to have higher yields as compared to common stocks
- an increase in each Fund's use of leverage through borrowings to increase the Fund's total investable assets and income generating capabilities
Capital Gain Distributions (PDT)
John Hancock Premium Dividend Fund also announced today that it has declared a short-term capital gain distribution of $0.0036 per share and a long-term capital gain distribution of $0.3368 per share. These capital gain distributions will be payable on December 19, 2013 to holders of record on December 12, 2013, with an ex-dividend date of December 10, 2013.
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A portion of a Fund's current distribution may include sources other than net investment income, including a return of capital. Investors should understand that a return of capital is not a distribution from income or gains of a Fund. As required under the Investment Company Act of 1940, a notice with the estimated components of the distribution will be sent to shareholders at the time of payment if it does not consist solely of net investment income. Such notice will also be posted to the Funds' website at www.jhinvestments.com. The notice should not be used to prepare tax returns as the estimates indicated in the notice may differ from the ultimate federal income tax characterization of distributions. After the end of each calendar year, investors will be sent a Form 1099-DIV informing them how to report distributions received during that year for federal income tax purposes.
A Fund's distribution rate may be affected by numerous factors, including market conditions, fund performance and other factors. There is no guaranty that the new distribution amounts for the Funds will be maintained.
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Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.
An investor should consider a Fund's investment objectives, risks, charges and expenses carefully before investing.
About John Hancock Investments
John Hancock Investments provides asset management services to individuals and institutions through a unique manager-of-managers approach. A wealth management business of John Hancock Financial, we managed approximately $100 billion in assets as of September 30, 2013, across mutual funds, college savings plans, and retirement plans.
About John Hancock Financial and Manulife Financial
John Hancock Financial is a division of Manulife Financial, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife Financial in Canada and Asia, and primarily as John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were C$574.6 billion (US$5558.7 billion) at September 30, 2013. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
SOURCE John Hancock Investments