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

Rhea-AI Summary

The John Hancock Premium Dividend Fund (NYSE: PDT) declared a monthly distribution of $0.0975 per share, payable on July 29, 2022, to shareholders of record as of July 11, 2022. This distribution comes from various sources, including 46% net investment income and 54% return of capital. The fund's managed distribution plan ensures fixed monthly payments until further notice. Investors should note that the fund may have distributed more than its income and net capital gains, indicating a return of capital.

Positive

• Monthly distribution of $0.0975 per share paid on July 29, 2022.
• 46% of the distribution comes from net investment income, indicating some operational income.
• 8.76% annualized current distribution rate expressed as a percentage of NAV as of June 30, 2022.

Negative

• 54% of the distribution is a return of capital, which may not reflect sustainable income.
• -5.54% cumulative total return (in relation to NAV) for the fiscal year through June 30, 2022.

BOSTON, July 29, 2022 /PRNewswire/ - John Hancock Premium Dividend Fund (NYSE: PDT) (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 $0.0975 per share paid to all shareholders of record as of July 11, 2022, 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 Premium Dividend Fund (NYSE: PDT) with important information concerning the distribution declared on July 1, 2022, and payable on July 29, 2022. No action is required on your part.

Distribution Period:                                                                       July 2022

Distribution Amount Per Common Share:                                     $0.0975

The following table sets forth the estimated sources of the current distribution, payable July 29, 2022, 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 07/1/2022-07/31/2022				For the fiscal year-to-date period 11/1/2021-07/31/2022 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.0445		46 %		0.6473		74 %
Net Realized Short-      Term Capital Gains		0.0000		0 %		0.1928		22 %
Net Realized Long-      Term Capital Gains		0.0000		0 %		0.0366		4 %
Return of Capital or      Other Capital Source		0.0530		54 %		0.0000		0 %
Total per common share		0.0975		100 %		0.8767		100 %
Average annual total return (in relation to NAV) for the 5 years ended on June 30, 2022								5.01 %
Annualized current distribution rate expressed as a percentage of NAV as of June 30, 2022								8.76 %
Cumulative total return (in relation to NAV) for the fiscal year through June 30, 2022								-5.54 %
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of June 30, 2022								6.57 %

 

1 The Fund's current fiscal year began on November 1, 2021, and will end on October 31, 2022.

 

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 Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital.  A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you.  A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income."

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 July 2022 distribution pursuant to the Fund's managed distribution plan (the "Plan").  Under the Plan, the Fund makes fixed monthly distributions in the amount of $0.0975 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.

Effective October 1, 2021, copies of all notices informing shareholders of distributions made by the fund in excess of accumulated net investment income will be posted on John Hancock Investment Management's public website (jhinvestments.com) and on the Legal Notice System (LENS), a service offering of the Depository Trust Company (DTC) accessible by broker-dealer firms. To the extent required, notice may also be provided via press release. John Hancock Investment Management distributed paper copies of these notices by mail until March 30, 2022. Effective April 1, 2022, the notices will be delivered exclusively via the methods described above.

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 Manulife Financial Corporation

FAQ

What is the monthly distribution amount for John Hancock Premium Dividend Fund (PDT) in July 2022?

The monthly distribution amount for July 2022 is $0.0975 per share.

When will the July 2022 distribution for PDT be paid?

The July 2022 distribution will be paid on July 29, 2022.

What are the sources of the July 2022 distribution for PDT?

The sources include 46% net investment income and 54% return of capital.

What is the annualized distribution rate for PDT as of June 30, 2022?

The annualized current distribution rate for PDT is 8.76% as of June 30, 2022.