PDT - PDT: Utility And Financial Exposure At A Discount
2024-05-30 09:06:10 ET
Summary
- John Hancock's Premium Dividend Fund offers a high 8.7% dividend yield and monthly distributions, making it appealing for income-focused investors.
- The fund invests in dividend-paying preferred stocks and common stocks, with a majority exposure to utilities and a shift towards financials.
- PDT trades at a discount to net asset value, presenting an opportunity for entry. PDT has rarely traded in the discount territory over the last ten years.
Overview
As the general cost of living across the US continues to rise, people are looking for ways to counter these increases by raising their income. This same concept applies for investors that depend on the income generated from their portfolio. John Hancock's Premium Dividend Fund ( PDT ) grants us the opportunity to lock in a high 8.7% dividend yield and that pays out its distributions on a monthly basis. PDT operates as a closed end fund that invests in dividend paying preferred stocks and common stocks of companies. This inclusion of preferred stock exposure offers another layer of risk management that I will discuss later. The fund itself is diversified in nature but maintains a majority exposure to utilities....
PDT: Utility And Financial Exposure At A Discount