John Hancock Preferred Income Fund III (NYSE: HPS) is a closed-end management investment company that primarily focuses on investing in preferred securities, which are fixed-income instruments that typically provide higher yields than common stocks. The fund aims to achieve high current income with a secondary goal of capital appreciation, making it an appealing choice for income-seeking investors.
Launched in 2016 by John Hancock Investment Management, HPS follows a strategy that emphasizes the acquisition of preferred stocks and other income-producing securities, including trust preferred securities and convertible preferred securities. This diversified approach allows the fund to capture potential returns across different areas of the fixed income landscape.
HPS is designed for those looking to enhance income portfolios, particularly in a low-interest-rate environment. The income generated from the fund can help investors manage cash flows and meet living expenses. As of October 2023, HPS maintains a distribution policy that targets an attractive monthly dividend payout, providing investors with regular income.
The fund's management team utilizes a disciplined investment process, focusing on credit quality and issuer diversification to minimize risk. This is essential in the preferred securities market, where credit risk can vary significantly among issuers. HPS typically invests in a blend of investment-grade and sub-investment-grade preferreds to optimize returns while maintaining a balanced risk profile.
Moreover, HPS has been able to navigate the complexities of changing interest rates and market volatility, which can significantly impact preferred securities. Investors should consider factors such as the fund’s performance history, expense ratio, and market conditions before investing. Overall, HPS presents a viable option for income-focused investors looking to tap into the potential benefits of the preferred securities market.
As of October 2023, John Hancock Preferred Income Fund III (NYSE: HPS) presents several investment considerations for income-focused investors. This closed-end fund primarily emphasizes preferred securities, which makes it an attractive option for those seeking regular income with lower volatility compared to common equities.
HPS invests in a diversified portfolio of preferred stocks and other income-producing securities, benefiting from the typically higher yields these instruments can offer. The fund's structure allows it to leverage its investments, enhancing potential returns, though it also introduces an element of risk. Investors must consider the prevailing interest rate environment, as rising interest rates can negatively impact the price of preferred shares, leading to capital depreciation. Given current forecasts indicating a potential peak in interest rate hikes by the Federal Reserve, the fund may present an entry point for yield-seeking investors, provided it can maintain its dividend payouts.
Financial metrics illustrate HPS's performance and management prowess. As of the recent quarter, the fund has maintained a solid distribution rate, appealing to fixed-income investors. The management's experience in navigating both equity and income markets is essential as they position the fund toward quality issuers with strong fundamentals, mitigating credit risk.
However, potential investors should be cognizant of the fund's premium status over its net asset value, as this could affect total returns. It's essential to weigh the desirability of HPS's yield against its trading price and NAV carefully. Additionally, investors should remain aware of broader economic indicators, such as inflation and credit spreads, as these could influence the performance of preferred securities.
In conclusion, HPS offers a compelling avenue for income generation with its diversified approach to preferred stocks, but potential entrants should evaluate the fund's NAV and market conditions before investing.
* MWN AI Summary and Analysis is based on asking OpenAI to summarize and analyze the company and stock symbol.
John Hancock Preferred Income Fund III is a closed-end management investment company. Its investment objective is to provide a high level of current income consistent with preservation of capital, and to provide growth of capital. Under normal market conditions, the fund invests at least 80% of its assets (net assets plus borrowings for investment purposes) in preferred stocks and other preferred securities, including convertible preferred securities. This is a non-fundamental policy and may be changed by the Board of Trustees of the fund provided that shareholders are provided with at least 60 days prior written notice of any change as required by the rules under the 1940 Act. The fund intends to invest primarily in fully taxable preferred securities. The funds portfolio of preferred securities may include both fixed rate and adjustable rate securities.
Quote | John Hancock Preferred Income Fund III Preferred Income Fund III (NYSE:HPS)
Last: | $14.37 |
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Change Percent: | -0.14% |
Open: | $14.38 |
Close: | $14.37 |
High: | $14.42 |
Low: | $14.32 |
Volume: | 99,554 |
Last Trade Date Time: | 07/08/2025 03:41:17 pm |
News | John Hancock Preferred Income Fund III Preferred Income Fund III (NYSE:HPS)
2025-06-02 16:28:59 ET More on John Hancock Preferred Income Fund III HPS: Suppressed By Higher Interest Rate Environment Dividend scorecard for John Hancock Preferred Income Fund III Read the full article on Seeking Alpha For further deta...
JOHN HANCOCK CLOSED-END FUNDS DECLARE MONTHLY DISTRIBUTIONS PR Newswire BOSTON , June 2, 2025 /PRNewswire/ - The John Hancock closed-end funds listed below declared their monthly distributions today as follows: Declaration Date: June 2, 2025 Ex Dat...
Message Board Posts | John Hancock Preferred Income Fund III Preferred Income Fund III (NYSE:HPS)
Subject | By | Source | When |
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Stock_Tracker: Latest John Hancock Preferred Income Fund III (HPS) Headlines Ex-Dividend Alert: 3 St | Stock_Tracker | investorshangout | 03/14/2014 7:47:47 PM |
chartguy89: HPS Stock Charts Last: +0.08 $HPS 1 Month Chart | chartguy89 | investorshangout | 03/05/2014 3:03:45 AM |
MWN AI FAQ **
Over the past year, John Hancock Preferred Income Fund III (HPS) has demonstrated solid performance metrics, including a competitive yield and total return, positioning it favorably against its peers in the preferred income fund category.
As of October 2023, the dividend yield of John Hancock Preferred Income Fund III (HPS) is competitive with other income-focused funds, often ranking favorably among peers while providing attractive returns for income-seeking investors.
The primary holdings in John Hancock Preferred Income Fund III (HPS) typically include preferred stocks and income-generating securities, which contribute to a moderate risk profile by providing stable income while exposing the fund to interest rate and credit risk fluctuations.
John Hancock Preferred Income Fund III employs a strategy focused on investing in a diversified portfolio of preferred securities and subordinated debt while actively managing interest rate risk through duration management and strategic allocation to various credit qualities.
** MWN AI Questions are based on asking OpenAI to ask and answer four questions about the company and stock symbol.
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John Hancock Preferred Income Fund III Preferred Income Fund III Company Name:
HPS Stock Symbol:
NYSE Market:
-0.14% G/L:
$14.37 Last:
99,554 Volume:
$14.38 Open:
$14.37 Close:
JOHN HANCOCK CLOSED-END FUNDS DECLARE MONTHLY DISTRIBUTIONS PR Newswire BOSTON , June 2, 2025 /PRNewswire/ - The John Hancock closed-end funds listed below declared their monthly distributions today as follows: Declaration Date: June 2, 2025 Ex Dat...
2025-04-10 18:49:13 ET John Hancock Preferred Income Fund III (HPS) - This analysis reviews how the stock price reacted during the last 12 earnings periods. The average open to high on the day of earnings was 0.55%. The average open to low on the day of earnings was -0.51%. The ...
2025-04-01 18:44:30 ET John Hancock Preferred Income Fund III (HPS) earnings is schedule to release on 2025-04-02. Following Earnnigs Price Analysis was done using last 12 quarters historical earnings. Opening Gap Moves The historical opening gap move in HPS stock price following ea...