JOHN HANCOCK TAX-ADVANTAGED DIVIDEND INCOME FUND - NOTICE TO SHAREHOLDERS - SOURCES OF DISTRIBUTION UNDER SECTION 19(a)

Rhea-AI Summary

John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) announced a monthly distribution of $0.1380 per share to all shareholders of record as of December 11, 2023, pursuant to the Fund's managed distribution plan. The sources of the distribution include net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital or other capital source. The average annual total return for the 5 years ended on November 30, 2023, was 4.41%, and the annualized current distribution rate expressed as a percentage of NAV as of November 30, 2023, was 8.02%.

Insights

Financial Analyst

The distribution announcement by John Hancock Tax-Advantaged Dividend Income Fund is a significant event for investors and market analysts. The fund's decision to maintain its monthly distribution at $0.1380 per share reflects its performance and management's confidence in generating consistent income. The distribution's composition, predominantly from net investment income and net realized long-term capital gains, suggests a healthy balance between income generation and capital growth strategies. This balance is crucial for closed-end funds, as it impacts their ability to sustain distributions over time.

Furthermore, the fund's average annual total return of 4.41% over the past five years, coupled with an annualized distribution rate of 8.02% of NAV, indicates an attractive yield for investors, particularly in the current low-interest-rate environment. However, the sustainability of such a high distribution rate relative to NAV should be monitored, as it may include return of capital under certain market conditions, which is not the case currently.

The cumulative fiscal year-to-date distribution rate of 1.34% of NAV suggests that the fund is on track to meet its distribution objectives for the year. Nonetheless, investors should consider the fund's performance in relation to the broader market and sector-specific dynamics, as well as the potential impact of changing economic conditions on future income and capital appreciation potential.

Tax Expert

The designation of the John Hancock Tax-Advantaged Dividend Income Fund as 'tax-advantaged' is particularly relevant from a taxation perspective. The structure of the distributions, which includes net realized long-term capital gains, can offer favorable tax treatment for investors, as long-term capital gains are typically taxed at lower rates than short-term gains or ordinary income. This aspect of the fund's distributions could be appealing to tax-sensitive investors seeking to maximize after-tax returns.

Additionally, the fund's managed distribution plan may aim to provide investors with a predictable income stream, which can be a critical factor in investment planning, especially for retirees or those seeking regular income. It is important for investors to understand the tax implications of these distributions, as the character of the income—whether it is investment income or capital gains—can significantly affect their tax liability.

BOSTON, Dec. 29, 2023 /PRNewswire/ - John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) (the "Fund"), a closed-end fund managed by John Hancock Investment Management LLC and subadvised by Manulife Investment Management (US) LLC, announced today sources of its monthly distribution of $0.1380 per share paid to all shareholders of record as of December 11, 2023, pursuant to the Fund's managed distribution plan. This press release is issued as required by an exemptive order granted to the Fund by the U.S. Securities and Exchange Commission.

Notification of Sources of Distribution

This notice provides shareholders of the John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) with important information concerning the distribution declared on December 1, 2023, and payable on December 29, 2023. No action is required on your part.

Distribution Period:                                                                       December 2023

Distribution Amount Per Common Share:                                     $0.1380

The following table sets forth the estimated sources of the current distribution, payable December 29, 2023, and the cumulative distributions paid this fiscal year to date from the following sources: net investment income; net realized short term capital gains; net realized long term capital gains; and return of capital or other capital source. All amounts are expressed on a per common share basis and as a percentage of the distribution amount.

		For the period 12/1/2023-12/31/2023				For the fiscal year-to-date period 11/1/2023-12/31/2023 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.0768		56 %		0.2083		75 %
Net Realized Short- Term Capital Gains		0.0081		6 %		0.0243		9 %
Net Realized Long- Term Capital Gains		0.0531		38 %		0.0434		16 %
Return of Capital or Other Capital Source		0.0000		0 %		0.0000		0 %
Total per common share		0.1380		100 %		0.2760		100 %
Average annual total return (in relation to NAV) for the 5 years ended on November 30, 2023								4.41 %
Annualized current distribution rate expressed as a percentage of NAV as of November 30, 2023								8.02 %
Cumulative total return (in relation to NAV) for the fiscal year through November 30, 2023								9.31 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of November 30, 2023								1.34 %

_________________________________________ 1 The Fund's current fiscal year began on November 1, 2023 and will end on October 31, 2024

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's managed distribution plan.

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

The Fund has declared the December 2023 distribution pursuant to the Fund's managed distribution plan (the "Plan"). Under the Plan, the Fund makes fixed monthly distributions in the amount of $0.1380 per share, which will continue to be paid monthly until further notice.

If you have questions or need additional information, please contact your financial professional or call the John Hancock Investment Management Closed-End Fund Information Line at 1-800-843-0090, Monday through Friday between 8:00 a.m. and 7:00 p.m., Eastern Time.

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 Investment Management

A company of Manulife Investment Management, we serve investors through a unique multimanager approach, complementing our extensive in-house capabilities with an unrivaled network of specialized asset managers, backed by some of the most rigorous investment oversight in the industry. The result is a diverse lineup of time-tested investments from a premier asset manager with a heritage of financial stewardship.

About Manulife Investment Management

Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 18 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We're committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

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SOURCE John Hancock Investment Management

FAQ

What is the monthly distribution announced by John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD)?

The monthly distribution announced by John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) is $0.1380 per share paid to all shareholders of record as of December 11, 2023.

What are the sources of the distribution declared by John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD)?

The sources of the distribution declared by John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) include net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital or other capital source.

What was the average annual total return for the 5 years ended on November 30, 2023, for John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD)?

The average annual total return for the 5 years ended on November 30, 2023, for John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) was 4.41%.

What was the annualized current distribution rate expressed as a percentage of NAV as of November 30, 2023, for John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD)?

The annualized current distribution rate expressed as a percentage of NAV as of November 30, 2023, for John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) was 8.02%.