Think you have the wrong fund. HPF is a preferred securities fund. The Net Investment Income is strong and dividend payment history is excellent. NII currently covers the dividend with a small surplus which results in a small but consistent increase in UNII.
To the original poster: To make it perfectly clear, this fund does not invest in mortgages. It invests in preferred stocks. It may be that some of the preferreds are issued by companies that invest in mortgages, but HPF does NOT directly invest in mortgages.
Through June, the portion of the monthly dividend paid out of net investment income is 98% for the fiscal year. Only 2%, or $.0316, has been return of capital. As pointed out in the letter from John Hancock with regard to the ROC, however, that could change during the remainder of the fiscal year as ROC may be reduced by net investment income exceeding dividends paid during the remainder of the year.
I'm very happy with $1.55 of dividends from net investment income out of the total $1.58 dividends so far this year. It is improving every month and the June dividend was 100% covered by investment income.