October 23, 2015

John Hancock Premium Dividend Fund (PDT)

John Hancock Premium Dividend Fund (PDT) is a popular preferred stock closed end fund. It invests in dividend paying preferred stocks and common equity securities.

This John Hancock fund’s investment objective is to provide high current income with modest capital growth through investment in dividend paying preferred stocks and common equity securities. The fund managers are Gregory K. Phelps, and Joseph H. Bozoyan. This fund has a high dividend yield of 8.37%.

Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying securities and invests more than 25% of total assets in the utilities industry. The fund invests mainly in investment grade rated preferred stocks and debt obligations.

PDT Fund Profile

    John Hancock Premium Dividend Fund (PDT)
  • Fund Inception Date: 12/21/1989
  • Ticker Symbol: PDT
  • CUSIP: 41013T105
  • Rank in category (YTD): 100%
  • Category: Preferred Stock
  • Distribution Rate: 8.37%
  • Effective Leverage: 33.48%
  • Capital Gains: -
  • Base Expense Ratio: 1.42%
  • Net Assets: $ 1.1 billion
  • Annual Turnover Rate: 67.00%

Fund Returns

In 2015, this fund has a year to date return of -0.63%. It has returned 4.77% over the past 3 year, and 10.92% over the past 5 year. Morningstar has ranked this top closed end fund with 3 stars rating. Fund performance is as follows:
  • Year 2014: 27.87%
  • Year 2013: -5.55%
  • Year 2012: 7.83%
  • Year 2011: 26.14%
  • Year 2010: 25.87%
You can buy this closed end fund from your brokerage. This closed end fund is trading like stocks or ETFs (Exchange Traded Funds). Unlike mutual fund, you can purchase as little as 1 share. The current share price is $12.88.

More: Top 8 Preferred Stock ETFs In 2015

As of October 2015, the top 6 sectors are Utilities, Financials, Telecommunication Service, Energy, Consumer Staples, Industrials, and Materials. Top 5 issuers are Bank of America Corp., JPMorgan Chase & Company, PPL Capital Funding, Inc., Morgan Stanley, and Interstate Power & Light Company.

Pros:
  • This John Hancock Premium Dividend Fund (PDT) has a high yield for income.
Cons:
  • It doesn't have a great performance in 2015.
  • This fund uses leverage and may have higher risks than other non-leverage funds.

Fund Risks

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

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