John Hancock Tax-Advantaged Dividend Income Fund (HTD)

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John Hancock Tax-Advantaged Dividend Income Fund (HTD) is a popular closed end fund. It invests mainly in dividend paying common and preferred securities.

This John Hancock fund’s investment objective is to provide a high level of after-tax total return from dividend income and capital appreciation. The fund managers are Gregory K. Phelps, Harindra de Silva, Gregory McMurran, Dennis Bein, and Joseph H. Bozoyan. This fund has a high dividend yield of 7.50%.

This equity fund has an expense fee of 1.55%. With assets of 1.2 billion, the fund sponsor is John Hancock Advisers LLC. The fund market price is trading 11.05% discount from its net asset value (NAV). This creates opportunity for value investor to invest in this fund.

HTD Fund Profile

    John Hancock Tax-Advantaged Dividend Income Fund (HTD)
  • Fund Inception Date: 02/27/2004
  • Ticker Symbol: HTD
  • CUSIP: 41013V100
  • Rank in category (YTD): 100%
  • Category: US Stock - Equity Tax-Advantaged
  • Distribution Rate: 7.50%
  • Effective Leverage: 32.78%
  • Capital Gains: -
  • Base Expense Ratio: 1.21%
  • Net Assets: $ 1.24 billion
  • Annual Turnover Rate: 7.00%

Fund Returns

In 2015, this fund has a year to date return of -7.98%. It has returned 7.85% over the past 3 year, and 12.91% over the past 5 year. Morningstar has not ranked this John Hancock Tax-Advantaged Dividend Income Fund. Fund performance is as follows:
  • Year 2014: 30.82%
  • Year 2013: 8.33%
  • Year 2012: 11.100
  • Year 2011: 24.88%
  • Year 2010: 24.85%
As of August 2015, top 6 holdings are Morgan Stanley, Interstate Power & Light Company, Wells Fargo & Company Series J, American Electric Power Company Inc, BB&T Corp., and Eversource Energy. This fund has 120 holdings in its portfolio. Top 4 sectors are utilities, financials, energy, and telecommunication service.

More: Top 8 Tax Advantaged Stock Closed End Funds In 2015

Pros:
  • This John Hancock Tax-Advantaged Dividend Income Fund has a high yield for income.
Cons:
  • In 2015, its performance has been lagging.
  • This fund uses leverage and may have higher risks than other non-leverage funds.

Fund info

It uses the following investment philosophy:
  • It provide income emphasis by investing in dividend paying securities
  • It also uses tax conscious approach. This John Hancock fund is targeting securities paying dividends that typically qualify for a more favorable long-term capital gains tax rate.
  • It provides utilities exposure. This closed end fund emphasizes preferred and common securities in the high-dividend-paying utilities sector.

Risks

The investment risks are market risk, interest rate risk, leverage risk, etc.

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