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) announced a monthly distribution of $0.0975 per share, payable on July 30, 2021, to shareholders of record as of July 12, 2021. This follows the Fund's managed distribution plan and includes various sources: net investment income (61%), net realized long-term capital gains (39%), and potential return of capital. The fund has cumulatively distributed $0.8768 this fiscal year to date. The annualized current distribution rate is 7.96% as of June 30, 2021.

Positive

• Monthly distribution of $0.0975 per share provides consistent income for shareholders.
• Annualized current distribution rate of 7.96% indicates robust returns relative to NAV.

Negative

• A portion of the distribution may be a return of capital, which can signal sustainability concerns.

BOSTON, MA, July 30, 2021 /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 12, 2021, 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, 2021, and payable on July 30, 2021. No action is required on your part.

Distribution Period:	July 2021
Distribution Amount Per Common Share:	$0.0975

The following table sets forth the estimated sources of the current distribution, payable July 30, 2021, 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 07/1/2021-07/31/2021				For the fiscal year-to-date period 11/1/2020-07/31/2021 [1]
Source		Current Distribution ($)		% Breakdown of the Current Distribution		Total Cumulative Distributions ($)		% Breakdown of the Total Cumulative Distributions
Net Investment Income		0.0599		61%		0.6949		79%
Net Realized Short- Term Capital Gains		0.0000		0%		0.0731		8%
Net Realized Long- Term Capital Gains		0.0376		39%		0.0714		8%
Return of Capital or Other Capital Source		0.0000		0%		0.0374		5%
Total per common share		0.0975		100%		0.8768		100%
Average annual total return (in relation to NAV) for the 5 years ended on June 30, 2021								6.14%
Annualized current distribution rate expressed as a percentage of NAV as of June 30, 2021								7.96%
Cumulative total return (in relation to NAV) for the fiscal year through June 30, 2021								21.06%
Cumulative fiscal year-to-date distribution rate expressed as a percentage of NAV as of June 30, 2021								5.97%

 

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 2021 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$1.3 trillion (US$1.0 trillion) as of March 31, 2021. 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.

¹  The Fund's current fiscal year began on November 1, 2020, and will end on October 31, 2021.

View original content to download multimedia:https://www.prnewswire.com/news-releases/john-hancock-premium-dividend-fund-notice-to-shareholders--sources-of-distribution-under-section-19a-301345452.html

SOURCE John Hancock Investment Management

FAQ

What is the dividend amount for John Hancock Premium Dividend Fund (PDT) in July 2021?

The dividend amount is $0.0975 per share.

When is the payment date for PDT's July 2021 distribution?

The payment date is July 30, 2021.

What percentage of PDT's July 2021 distribution comes from net investment income?

61% of the distribution comes from net investment income.

What is the annualized current distribution rate for PDT as of June 30, 2021?

The annualized current distribution rate is 7.96%.

What sources contribute to the PDT distribution?

Sources include net investment income, net realized long-term capital gains, and potential return of capital.