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An Insight into the January 2025 Distribution of John Hancock Tax-Advantaged Dividend Income Fund

In a recent announcement, the John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD), a well-regarded closed-end fund managed by John Hancock Investment Management LLC, revealed the details of its monthly distribution for January 2025. Shareholders can expect a per-share distribution amounting to $0.1380 for shares registered as of January 13, 2025. This follows the fund's managed distribution plan, which aims to provide consistent returns to investors.

Breakdown of the January Distribution

As part of the transparency promised to shareholders, the fund issued a notice detailing the estimated sources of its distributions, a duty enforced by an exemptive order from the U.S. Securities and Exchange Commission. The breakdown of current distribution sources includes:

• - Net Investment Income: $0.0400 (29%)
• - Net Realized Short-Term Capital Gains: $0.0125 (9%)
• - Net Realized Long-Term Capital Gains: $0.0809 (59%)
• - Return of Capital or Other Capital Source: $0.0046 (3%)

This diligent breakdown demonstrates the fund's commitment to providing shareholders with a clear understanding of how their distributions are generated. Throughout this fiscal year, starting from November 1, 2024, to date, the cumulative distributions total $0.4140, reflecting a similar structure in source allocation.

Importance of Understanding Returns on Investment

The Fund warns investors that a portion of their distributions may represent a return of capital, which implies that some of the invested money is being paid back. This does not necessarily correspond to the performance of the fund's investments. Rather, a return of capital can often occur when the fund's payouts exceed its net income and realized capital gains. Investors should thus be cautious and avoid conflating returns with overall yield or income generated from their investments.

The fund's reports indicate a 6.89% annualized current distribution rate expressed as a percentage of NAV as of December 31, 2024, despite also showing a cumulative total return of -1.58% for the current fiscal year. This juxtaposition of figures epitomizes the complex nature of closed-end funds and emphasizes the importance of thorough research and understanding before investing.

Future Plans and Continued Distributions

The communications assure shareholders that monthly distributions will continue indefinitely at the announced amount until further notice, fostering a sense of reliability among investors. Moreover, there’s a notable emphasis on consulting with financial professionals for any queries related to investments and distributions, reinforcing the importance of informed decision-making in finance.

About John Hancock Investment Management

John Hancock Investment Management, under the umbrella of Manulife Investment Management, commits to a distinguished and multilevel investment approach, combining internal capabilities with a unique network of specialist managers. This approach aims to deliver a variety of robust investment options backed by rigorous oversight and financial stewardship, which is paramount for investors seeking assurance in a fluctuating market.

As the global brand extends its reach across diverse geographies, its commitment to responsible investment practices remains strong, ensuring that the needs of individuals, institutions, and retirement plans are meticulously addressed. The promise of innovation and collaboration continues to define their operations, solidifying their stature in the realm of investment management.

In summary, the January 2025 distribution announcement by the John Hancock Tax-Advantaged Dividend Income Fund signifies a clear commitment to shareholder transparency and satisfaction. As investors navigate the complexities of the fund's structures, they are encouraged to remain proactive in seeking information and understanding their investments.