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John Hancock Tax-Advantaged Dividend Income Fund Announces Significant Update

On June 26, 2025, the John Hancock Tax-Advantaged Dividend Income Fund (HTD), recognized for its closed-end fund structure, disclosed an important amendment to its distribution strategy. A decision by the Fund's Board of Trustees led to a 15% increase in monthly distributions, elevating the amount from $0.138 to $0.158 per share. This strategic move reflects John Hancock Investment Management's commitment to optimizing returns for its investors.

Increased Monthly Distribution Breakdown

The newly declared monthly distribution is scheduled to take effect starting July 31, 2025, with the following key dates outlined:

• - Declaration Date: June 26, 2025
• - Ex Date: July 11, 2025
• - Record Date: July 11, 2025
• - Payment Date: July 31, 2025

This adjustment translates to an annualized distribution rate of 7.67%, based on the Fund's net asset value (NAV) of $24.72, and an 8.31% yield in relation to the closing share price of $22.82 recorded as of June 25, 2025. It is essential for investors to recognize how these figures can fluctuate over time due to market conditions.

Composition of Fund Distributions

Investors should note that distributions from the Fund may consist of various components including net investment income, and net realized capital gains. If required, there might be a return of capital as well. The approach aims for sustainability and consistency in payouts, while adhering to prudent portfolio management principles.

The strategic plan includes contingencies for avoiding federal income tax burdens on taxable income and capital gains that are not part of the established regular distributions. Thus, additional distributions may be made if deemed necessary under such regulations.

Fund Management Approach

The John Hancock Tax-Advantaged Dividend Income Fund is managed by John Hancock Investment Management LLC, supported by sub-advisor Manulife Investment Management (US) LLC. This dual-layer management approach aims to leverage diverse investment expertise, enhancing overall fund performance and mitigating risks for investors.

Investors are encouraged to understand the broader implications of such distributions and should refrain from making assumptions about the fund's performance solely based on distribution amounts or the specifics of the managed distribution plan.

Outlook and Future Considerations

While the Fund has adopted this improved managed distribution strategy, it holds the right to amend or end the plan without prior notice. This flexibility ensures that the Fund can adapt to changing market dynamics and investor needs while maintaining prudent fiscal management.

As the financial landscape continues to evolve, the Fund's Board of Trustees will conduct regular reviews of the distribution framework to ensure alignment with investor interests and regulatory requirements.

Conclusion

The enhancement of the monthly distribution is a promising gesture for current and potential investors, signifying a responsive approach to investor needs and market conditions. With this announcement, the John Hancock Tax-Advantaged Dividend Income Fund reaffirms its commitment to delivering value and financially empowering its shareholders in today's investment environment. Investors should monitor updates closely and consult financial advisors to navigate the implications effectively.