XLU - HTD: A Reliable Income Payer For Conservative Investors: Utilities Exposure And 7.7% Yield
2025-10-12 08:00:00 ET
Introduction:
John Hancock Tax-Advantaged Dividend Fund ( HTD ) was launched in February 2004 as a closed-end fund. The fund's primary objective is to provide a high level of after-tax income. Capital appreciation is the secondary objective. It currently provides a roughly 7.7% distribution yield, and the market price offers nearly -7% discount to the NAV (net asset value). As the name indicates, the fund tries to make the distributions in a tax-efficient manner as much as possible. To meet these goals, it provides some of the distribution as ROC (return of capital). So, in that sense, it may be better to buy this fund in a taxable account. Although it is global in nature, it is mostly invested in U.S. securities to the extent of 85% plus. Other countries that have significant exposure are the U.K., Canada, France, and Switzerland. Further, it provides nearly 50% exposure to preferred and fixed-income securities, with a high concentration in the Utilities sector....
HTD: A Reliable Income Payer For Conservative Investors: Utilities Exposure And 7.7% Yield