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 (HTD) announced a monthly distribution of $0.1380 per share for February 2024. The distribution sources include 97% from net investment income, 3% from net realized short-term capital gains, and 0% from net realized long-term capital gains or return of capital. The fund's average annual total return for the past 5 years was 4.15%, with an annualized current distribution rate of 7.98% of NAV as of January 31, 2024.

Insights

Financial Analyst

The announcement by John Hancock Tax-Advantaged Dividend Income Fund (HTD) regarding its monthly distribution is a key piece of information for investors and stakeholders. The distribution of $0.1380 per share, primarily derived from net investment income (97% of the current distribution), suggests a stable source of earnings. It is noteworthy that the bulk of the distribution is not coming from capital gains or return of capital, which can be seen as a positive indicator of the Fund's operational performance.

Furthermore, the Fund's average annual total return of 4.15% over the past five years, juxtaposed with the annualized current distribution rate of 7.98% of NAV, could raise questions about the sustainability of the distribution rate. Investors should be mindful of the fact that a distribution rate higher than the total return could potentially lead to a depletion of assets over time unless the Fund can increase its earnings or realize additional capital gains.

Tax Expert

From a tax perspective, the structure of the distributions is crucial. The fact that the Fund is tax-advantaged means that the dividends it pays may be subject to more favorable tax treatment compared to ordinary income. This is particularly appealing to income-focused investors, especially those in higher tax brackets. The Fund's strategy to maximize tax-advantaged income by avoiding returns of capital also helps preserve the Fund's capital base, which is a significant consideration for long-term growth and sustainability.

Investment Strategist

Examining the Fund's cumulative total return of 11.54% for the fiscal year relative to NAV and the distribution rate of 2.66% for the same period, provides a broader context for the Fund's performance. It's important to compare these figures with broader market indices and similar investment vehicles to gauge performance. While the cumulative fiscal year-to-date distribution rate is in line with what might be expected, the annualized distribution rate is notably high, which could attract income-seeking investors but also warrants a closer look at the Fund's ability to maintain such payouts without eroding the principal over time.

BOSTON, Feb. 29, 2024 /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 February 12, 2024, 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 February 1, 2024, and payable on February 29, 2024. No action is required on your part.

Distribution Period:	February 2024
Distribution Amount Per Common Share:	$0.1380

The following table sets forth the estimated sources of the current distribution, payable February 29, 2024, 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 02/1/2024-02/29/2024				For the fiscal year-to-date period 11/1/2023-02/29/2024 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.1333		97 %		0.3678		67 %
Net Realized Short- Term Capital Gains		0.0047		3 %		0.0613		11 %
Net Realized Long- Term Capital Gains		0.0000		0 %		0.1229		22 %
Return of Capital or Other Capital Source		0.0000		0 %		0.0000		0 %
Total per common share		0.1380		100 %		0.5520		100 %
Average annual total return (in relation to NAV) for the 5 years ended on January 31, 2024								4.15 %
Annualized current distribution rate expressed as a percentage of NAV as of January 31, 2024								7.98 %
Cumulative total return (in relation to NAV) for the fiscal year through January 31, 2024								11.54 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of January 31, 2024								2.66 %

 

	______________________________
	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 February 2024 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 per share announced by John Hancock Tax-Advantaged Dividend Income Fund (HTD) for February 2024?

The monthly distribution per share announced by John Hancock Tax-Advantaged Dividend Income Fund (HTD) for February 2024 is $0.1380.

What are the sources of the distribution for February 2024 and their breakdown percentages?

The sources of the distribution for February 2024 include 97% from net investment income, 3% from net realized short-term capital gains, and 0% from net realized long-term capital gains or return of capital.

What was the average annual total return for John Hancock Tax-Advantaged Dividend Income Fund (HTD) for the 5 years ended on January 31, 2024?

The average annual total return for John Hancock Tax-Advantaged Dividend Income Fund (HTD) for the 5 years ended on January 31, 2024, was 4.15%.

What was the annualized current distribution rate expressed as a percentage of NAV as of January 31, 2024, for John Hancock Tax-Advantaged Dividend Income Fund (HTD)?

The annualized current distribution rate expressed as a percentage of NAV as of January 31, 2024, for John Hancock Tax-Advantaged Dividend Income Fund (HTD) was 7.98%.

When does the current fiscal year for John Hancock Tax-Advantaged Dividend Income Fund (HTD) begin and end?

The current fiscal year for John Hancock Tax-Advantaged Dividend Income Fund (HTD) began on November 1, 2023, and will end on October 31, 2024.