John Hancock Preferred Income Fund II Announces $0.1235 Cash Dividend per Share on October 14

Introduction

John Hancock Preferred Income Fund II (HPF) has maintained a consistent approach to generating income for investors through its preferred share structure. On October 14, 2025, the fund will go ex-dividend with a cash dividend of $0.1235 per share. This announcement aligns with HPF’s strategy to provide regular, predictable income, a characteristic that positions it favorably within the broader fixed-income and preferred equity sectors.

With a relatively stable market environment and investor focus on high-yield income options, the timing of HPF’s ex-dividend event is critical for both current and prospective shareholders. The fund’s financial performance in recent quarters further supports its ability to maintain dividend payouts, reinforcing its appeal as a low-volatility option for income-seeking investors.

Dividend Overview and Context

The $0.1235 cash dividend per share represents a consistent payout for HPF, with no stock dividend component announced. The ex-dividend date of October 14, 2025, will determine which investors qualify for the dividend. Shares will trade ex-dividend beginning on this date, and as a result, the share price is expected to drop by approximately the dividend amount, assuming no material market-moving news.

Key dividend metrics such as yield, payout ratio, and dividend cover are essential in evaluating the sustainability of a company’s dividend policy. HPF’s latest financials indicate robust income generation, which supports the reliability of its payout. Investors should monitor how the market reacts to this ex-dividend event, as it can influence both short-term price dynamics and long-term investment decisions.

Backtest Analysis

The backtest analysis of HPF’s historical ex-dividend events provides valuable insights for investors. Over 18 dividend events, the fund has demonstrated a consistent recovery pattern, with an average price recovery duration of approximately 5.25 days. There is a 67% probability that the stock will regain its value within 15 days post-ex-dividend, indicating a generally reliable rebound in price after payouts.

Driver Analysis and Implications

The fund’s latest financial report underscores its strong operational and income performance. With an operating income of $38.24 million and a net income of $29.40 million, HPF has demonstrated solid earnings generation. The net income attributable to common shareholders stands at $29.40 million, translating to a total basic earnings per common share of $1.3619. These figures support the fund’s ability to sustain its current dividend level.

The low interest expense and positive operating margin suggest that the fund is operating efficiently, with adequate cash flow to service its obligations and fund its preferred dividend. In a macroeconomic environment where yield is a key consideration for investors, HPF’s stable and predictable income stream makes it a compelling option for those seeking reliable returns.

Investment Strategies and Recommendations

For short-term investors, understanding the timing of the ex-dividend date is crucial. Those seeking to capture the dividend should ensure they are in ownership by the close of trading on October 11, 2025. Given the expected price drop, some may consider strategic entry or exit points around the ex-dividend event.

Long-term investors may benefit from holding HPF through the ex-dividend period. The backtest data shows a high probability of price recovery within a short timeframe, which suggests that holding HPF through the dividend period can help mitigate short-term downside risk. For those building a diversified income portfolio, HPF offers a low-volatility, high-conviction option that complements broader fixed-income strategies.

Conclusion & Outlook

John Hancock Preferred Income Fund II’s latest dividend announcement reflects its commitment to delivering consistent income to shareholders. With strong financials and a reliable historical performance post-dividend, HPF remains an attractive option for income-focused investors.

Upcoming events, such as the next earnings or dividend announcement, will provide further insights into the fund’s performance and future payout sustainability. Investors should stay attuned to these developments as they can influence both the dividend yield and overall investment outlook for HPF.

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