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John Hancock Tax Advantaged Div Message Board

  • dc10050 dc10050 Dec 22, 2012 3:13 PM Flag

    I'm not sure how to value HTD. What method do we use

    to explain if HTD is worth 18.08 per share?

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    • Your post prompted me to review the latest Morningstar Report from Nov 2012.
      Moringstar rating is very good with 4 stars giving Fund Management the higest rating for knowledge of securities within this portfolio (about 50% perferred stocks)
      Morningstar cautioned that the Federal Reserve may soon prohibit US Banks from counting preferred stock securities being counted as Tier 1 capital. This has already caused redemptions of the higher yielding Bank perferred stocks that is (slightly) negative for HTD. Mgt is replacing Bank Pfd with Utility Pfd to minimize the impact as the Bank redemptions ocurr.

      Mornighstar appears to be giving comfort that Mgt of HTD really know what they are doing and I am staying with my position.

      The yield at 6.5% is outstanding. The CEF is selling at an 8% discount. Leverage is about 35%.
      HTD is earning the .098 monthly dividend but there is caution that the dividend could be reduced slightly due to the current Bank redemptions of Hi Yield Pfd's

      I Trust this is helpful for making your decision and good luck.

24.60-0.02(-0.08%)Sep 27 4:02 PMEDT