John Hancock Tax-Advantaged Dividend Income Fund Announces Monthly Distribution
Boston, MA, USA – February 28, 2025
John Hancock Investment Management LLC, an affiliate of John Hancock Financial, and sub-advisor Manulife Investment Management (US) LLC, announced today the sources of the monthly distribution of $0.1380 per share paid to all shareholders of record as of February 13, 2025, for John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD). This distribution was made pursuant to the Fund’s managed distribution plan.
Background on John Hancock Tax-Advantaged Dividend Income Fund
The John Hancock Tax-Advantaged Dividend Income Fund is a closed-end fund that aims to provide current income that is exempt from federal income tax, as well as state and local income taxes for investors in certain states. The Fund invests primarily in municipal bonds and other income-producing securities that are exempt from federal income tax and, in some cases, state and local income taxes.
Sources of the Monthly Distribution
The sources of the monthly distribution are as follows:
- Net investment income: 75.6%
- Short-term capital gains: 13.2%
- Long-term capital gains: 11.2%
It is important to note that although the sources of the distribution indicated above may be subject to change, the actual amount of the distribution received by a shareholder will generally be subject to federal income tax, and for certain investors, state and local income taxes.
Impact on Individual Investors
For individual investors, this distribution may impact their tax situation in several ways:
- Federal Income Tax: The distribution is subject to federal income tax. The tax rate will depend on the investor’s tax bracket.
- State and Local Income Tax: Depending on the investor’s state of residence, the distribution may also be subject to state and local income taxes.
- Capital Gains: The long-term capital gains component of the distribution may increase the investor’s cost basis in the Fund, which could result in a lower capital gain or a loss when the investor sells their shares.
Impact on the World
On a larger scale, the distribution from the John Hancock Tax-Advantaged Dividend Income Fund represents a small part of the overall municipal bond market. However, it is an indication of the continued demand for income-producing investments that offer tax advantages.
The municipal bond market plays a significant role in the U.S. economy, providing financing for state and local governments for various projects, including infrastructure improvements, schools, and other public services. The demand for these tax-exempt securities can help governments issue bonds at lower interest rates, which can save taxpayers money over the life of the borrowing.
Conclusion
The monthly distribution from the John Hancock Tax-Advantaged Dividend Income Fund is an important financial event for the Fund’s shareholders, providing them with income exempt from federal income tax, as well as state and local income taxes for certain investors. While the sources of the distribution are known, the actual tax impact on individual investors will depend on their specific tax situation.
On a broader scale, the distribution represents the continued demand for income-producing investments that offer tax advantages. The municipal bond market plays a vital role in the U.S. economy, helping governments issue bonds at lower interest rates, which can save taxpayers money over the life of the borrowing.
As always, investors should consult their tax advisors for specific tax advice regarding their individual situations.
