#United States #Boston #John Hancock #Premium Dividend Fund #NYSE PDT

Overview of Distribution from John Hancock Premium Dividend Fund

On January 31, 2025, the John Hancock Premium Dividend Fund (PDT) announced an important update for its shareholders regarding the sources of its upcoming distributions. The fund is a closed-end investment initiative managed by John Hancock Investment Management, and it operates under a regulated structure established by the U.S. Securities and Exchange Commission (SEC).

Distribution Details

The fund will provide a monthly distribution of $0.0825 per share to all shareholders who are on record as of January 13, 2025. This marks another step in the fund’s managed distribution plan, aimed at ensuring shareholders receive consistent returns on their investments without requiring any action on their part.

Breakdown of the Distribution

The January 2025 payout will be funded via several sources. Notably, the breakdown highlights the anticipated sources of income for these distributions:

• - Net Investment Income: $0.0220 (27% of total)
• - Net Realized Short-Term Capital Gains: $0.0000 (0% of total)
• - Net Realized Long-Term Capital Gains: $0.0000 (0% of total)
• - Return of Capital or Other Capital Source: $0.0605 (73% of total)

In terms of cumulative distributions since the beginning of the fiscal year, which commenced on November 1, 2024, the total amounts to $0.2475 per common share, with similar breakdown percentages reflecting the sustainability of the fund.

Considerations for Shareholders

The fund's management has highlighted that the returns may include a return of capital, meaning that a portion of the distributions could stem from capital invested in the fund rather than purely from income generated by the fund's investments. This factor underlines the importance of shareholders understanding the implications that returns of capital have on their individual investment performance metrics.

Caution is advised as these distributions, while consistent, do not necessarily indicate the fund's overall profitability or performance metrics. Returns of capital can influence long-term investment strategies, necessitating careful consideration from investors regarding their financial positions.

Performance Metrics

As of December 31, 2024, the fund noted an average annual total return of 4.66% in relation to its net asset value (NAV), with an annualized current distribution rate expressed as a percentage of NAV reaching 7.51%. Despite a cumulative total return reflecting a slight decline of -1.70% this fiscal year, the management team is committed to maintaining robust distribution practices.

Contacting for Further Information

For investors seeking more clarity regarding their investments in the John Hancock Premium Dividend Fund, it’s recommended to consult a financial professional. Alternatively, inquiries can be made through the John Hancock Investment Management Closed-End Fund Information Line available at 1-800-843-0090, which operates on weekdays.

Conclusion

The announcement of the January distribution underpins the proactive approach John Hancock Investment Management takes to keep shareholders informed. Through their managed distribution plan, they aim to provide consistent returns, albeit accompanied by the need for astute financial evaluations from investors. This notice not only celebrates a case of financial transparency but also encourages ongoing dialogue between the fund and its stakeholders in navigating investment landscapes effectively.