HTD - HTD: Utilities Exposure Presents Rate Sensitivity

2024-06-18 22:58:04 ET

Summary

• John Hancock Tax-Advantaged Dividend Income Fund offers investors an 8.4% yield in a tax-friendly manner through preferred stocks and use of return of capital.
• HTD's exposure to the utilities sector presents some weakness amidst the higher interest rate environment.
• HTD currently trades at a discount to NAV of 9.33%, presenting an attractive entry point for investors looking to lock in high-yielding income.

Overview

When it comes to funding an early retirement, dealing with the tax consequences of early withdrawals or high dividend yielding funds can be a burden. The John Hancock Tax-Advantaged Dividend Income Fund ( HTD ) offers investors a way to mitigate this burden by distribution an 8.4% yield to investors in a tax friendly manner. Just for some context, HTD operates as a closed end fund that provides exposure to dividend paying companies across different sectors. The fund is able to provide tax friendly distributions because of its focus on preferred stocks of holdings that qualify for favorable long-term capital gains taxes....

For further details see: