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

An Overview of the John Hancock Premium Dividend Fund's Distribution

The John Hancock Premium Dividend Fund (NYSE: PDT), managed by John Hancock Investment Management LLC, has recently communicated pivotal information regarding its monthly distribution to shareholders. As of June 30, 2025, shareholders of record will receive a monthly distribution of $0.0825 per share, an announcement that aligns with the fund's managed distribution plan.

Breakdown of the Distribution Sources

According to their notice, released on June 30, 2025, the fund provided a detailed breakdown of the sources contributing to this distribution, primarily derived from its net investment income, realized capital gains, and returns of capital. Here's the breakdown:

• - Net Investment Income: $0.0614 (74% of total distribution)
• - Net Realized Short-Term Capital Gains: $0.0146 (18% of total)
• - Net Realized Long-Term Capital Gains: $0.0065 (8% of total)
• - Return of Capital: $0.0000 (0% of total)

The total distribution amount per common share thus equals $0.0825 for the distribution period ending June 30, 2025. This structured distribution is a key part of the fund's broader fiscal strategy.

Investment Performance Insights

Investors should carefully scrutinize the context in which this distribution is made. For the fiscal year to date, cumulative distributions have reached $0.6600 per common share. Delving into the comparative annual returns, the fund reported an average annual total return of approximately 10.17% over the past five years ending May 31, 2025. The annualized current distribution rate stands at 7.34%, further illustrating the ongoing action of providing returns to investors.

While favorable returns can be enticing, the fund has indicated that it had distributed more than its income and net realized capital gains; hence, there may be a return of capital within the overall distribution. It's crucial for shareholders to understand that a return of capital means that a portion of their original investments is being repaid, rather than strictly reflecting investment performance.

Tax Considerations

The notice also emphasized that all the amounts provided are preliminary estimates for reference and do not represent final figures for tax purposes. To ascertain precise tax implications, shareholders will receive a Form 1099-DIV, which will outline how these distributions should be reported for federal income tax obligations. The distributions' structure inherently suggests potential misalignments between current income and capital returns, prompting investors to integrate these factors into their decision-making processes.

Future Outlook

Going forward, John Hancock aims to simplify investment strategies for their clients, reminiscent of their commitment to making investments more accessible and comprehensible. The distribution plan—paying fixed distributions monthly further instills a sense of reliability amidst the usual investment volatility. Investors can rest easy knowing that these distributions are legally functioning within the guidelines set by the U.S. Securities and Exchange Commission.

If you have queries regarding the distribution or need further assistance, John Hancock encourages shareholders to reach out via their investor line or consult with financial professionals. Understanding the nuances and implications of distributions like those from the John Hancock Premium Dividend Fund is vital for shareholders looking to navigate their investment paths effectively. In conclusion, while the monthly dividends provide immediate returns, prospective performance and capital management remain pivotal in the investor's journey with the fund.