BOSTON, Dec. 2, 2013 /PRNewswire/ -- John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) and John Hancock Premium Dividend Fund (NYSE: PDT) (collectively the "Funds"), closed-end funds advised by John Hancock Advisers, LLC, today announced increases in their monthly distribution amounts. John Hancock Premium Dividend Fund also announced a short-term and long-term capital gain distribution.
Increased Monthly Distributions (HTD and PDT)
John Hancock Tax-Advantaged Dividend Income Fund increased its monthly distribution amount from $0.0985 per share to $0.1100 per share, an 11.7% increase. This increased distribution amount equates to a distribution rate of 6.55% at the Fund's net asset value ("NAV") of $20.16 and a distribution rate of 7.47% at the Fund's market price of $17.68, as of November 29, 2013.
John Hancock Premium Dividend Fund increased its monthly distribution amount from $0.0755 per share to $0.0800 per share, a 6% increase. This increased distribution amount equates to a distribution rate of 7.00% at the Fund's NAV of $13.72 and a distribution rate of 7.98% at the Fund's market price of $12.03, as of November 29, 2013.The increased distribution amount for each Fund is expected to be paid on December 19, 2013 to holders of record on December 12, 2013. The ex-dividend date is December 10, 2013. Over the past year there have been several developments that have enabled the Funds to increase their distributions, including:
- an increase in the dividend yield generated by each Fund's portfolio
- an increase in the ownership of preferred securities, which generally tend to have higher yields as compared to common stocks
- an increase in each Fund's use of leverage through borrowings to increase the Fund's total investable assets and income generating capabilities