John Hancock Premium Dividend Fund - Notice To Shareholders - Sources of Distribution Under Section 19(a)

Rhea-AI Summary

John Hancock Premium Dividend Fund (NYSE: PDT) has announced its monthly distribution of $0.0975 per share, payable to shareholders of record as of October 13, 2020. The distribution, part of the Fund's managed distribution plan, is being declared under an exemptive order from the U.S. SEC. The total current distribution comprises 62% from net investment income and 38% from net realized long-term capital gains, with no return of capital. The distribution is to be paid on October 30, 2020, continuing the Fund's commitment to regular payments to investors.

Positive

• Monthly distribution of $0.0975 maintains investor income.
• 62% of distribution from net investment income reflects stable earnings.
• 38% from long-term capital gains indicates potential for sustainable growth.

Negative

• No income from short-term capital gains raises concerns about investment strategy.
• Cumulative total return for the fiscal year is down -13.56%, signaling performance issues.

BOSTON, Oct. 30, 2020 /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 October 13, 2020, 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 October 1, 2020, and payable on October 30, 2020. No action is required on your part.

Distribution Period: October 2020

Distribution Amount Per Common Share: $0.0975

The following table sets forth the estimated sources of the current distribution, payable October 30, 2020, 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 10/1/2020-10/31/2020				For the fiscal year-to-date period 11/1/2019-10/31/2020 1
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.0604		62%		0.9045		77%
Net Realized Short- Term Capital Gains		0.0000		0%		0.0000		0%
Net Realized Long- Term Capital Gains		0.0371		38%		0.2643		23%
Return of Capital or Other Capital Source		0.0000		0%		0.0000		0%
Total per common share		0.0975		100%		1.1688		100%
Average annual total return (in relation to NAV) for the 5 years ended on September 30, 2020								5.84%
Annualized current distribution rate expressed as a percentage of NAV as of September 30, 2020								9.32%
Cumulative total return (in relation to NAV) for the fiscal year through September 30, 2020								-13.56%
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of September 30, 2020								9.31%

________________________

1 The Fund's current fiscal year began on November 1, 2019, and will end on October 31, 2020.

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 October 2020 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.

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 Financial and Manulife Financial

John Hancock is a division of Manulife Financial Corporation, a leading international financial services group that helps people achieve their dreams and aspirations by putting customers' needs first and providing the right advice and solutions. We operate primarily as John Hancock in the United States and as Manulife elsewhere. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions. Assets under management and administration by Manulife and its subsidiaries were over CAD$1.2 trillion (US$900 billion) as of June 30, 2020. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.

One of the largest life insurers in the United States, John Hancock supports approximately 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, and education savings plans. Additional information about John Hancock may be found at johnhancock.com.

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SOURCE John Hancock Investment Management

FAQ

What is the recent distribution amount for John Hancock Premium Dividend Fund (PDT)?

The recent distribution amount for John Hancock Premium Dividend Fund (PDT) is $0.0975 per share.

When is the dividend for PDT payable?

The dividend for PDT is payable on October 30, 2020.

What percentage of the recent distribution from PDT comes from net investment income?

62% of the recent distribution from PDT comes from net investment income.

What is the cumulative total return for PDT this fiscal year?

The cumulative total return for PDT this fiscal year is -13.56%.

How does PDT's current distribution relate to its managed distribution plan?

PDT's current distribution of $0.0975 per share is in line with its managed distribution plan, which aims for regular monthly payouts.