John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD) is a diversified closed-end management investment company that seeks to provide high levels of after-tax total return through a combination of tax-advantaged dividends and capital appreciation. Launched in November 2003, HTD is managed by John Hancock Investment Management, drawing on decades of experience in income-oriented investing. The fund’s capital structure allows it to employ modest leverage in pursuit of its income objectives, enhancing the overall yield on its portfolio holdings.
HTD primarily invests in a broad range of dividend-paying securities, including preferred stocks, convertible preferreds, dividend-paying common stocks and corporate debt. By blending equity and fixed-income exposures, the fund aims to generate a steady stream of current income while remaining positioned to participate in potential equity market appreciation. The inclusion of tax-advantaged securities—such as qualified dividend-paying equities and certain corporate obligations—underscores the fund’s focus on optimizing after-tax returns for its shareholders.
While HTD’s core holdings are concentrated in U.S. issuers across sectors such as financials, utilities and consumer staples, the fund also maintains selective exposure to non-U.S. securities to capture global income opportunities and diversify currency risk. Geographic allocations are managed within prescribed limits, and currency hedging is employed where appropriate to minimize the impact of foreign exchange fluctuations on distributions. Regular portfolio rebalancing ensures that the fund adheres to its risk-return profile.
The fund is overseen by a team of experienced portfolio managers and analysts at John Hancock Investment Management, supported by the broader research capabilities of Manulife Investment Management. Under their stewardship, HTD follows a disciplined, bottom-up approach to security selection and risk management. Regular commentary and updates are provided to investors, offering transparency around portfolio positioning and market outlooks as part of the fund’s ongoing commitment to informed income investing.
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