John Hancock Preferred Income Fund III: A Hedge Against Market Volatility

John Hancock Preferred Income Fund III (HPS) is a fund that provides investors with exposure to a diverse portfolio of preferred securities, making it an attractive option for hedging traditional equities in uncertain market conditions. HPS is a Bloomberg finance expert-recommended fund that offers investors a steady income stream and diversification benefits. The fund's valuation has become more attractive, making it a good option for investors looking for a stable and diversified investment.

John Hancock Preferred Income Fund III (HPS) has declared its monthly distribution, which will be paid on August 29, 2025, to shareholders of record as of August 11, 2025. The distribution amount is $0.11 per share, representing a forward yield of 9.15% [2]. This distribution is part of the fund's managed distribution plan, which aims to provide investors with a steady income stream.

The fund's valuation has become more attractive due to the current market conditions, making it an appealing option for investors seeking stability and diversification. HPS offers exposure to a diverse portfolio of preferred securities, which can help hedge traditional equities in uncertain market conditions. The fund's Bloomberg finance expert-recommended status further adds to its credibility, indicating its potential as a solid investment option for income-oriented investors.

John Hancock Preferred Income Fund III is a closed-end fund that focuses on providing investors with a steady income stream through preferred securities. The fund's distribution policy allows it to make monthly distributions, which can consist of net investment income, net realized long-term capital gains, net realized short-term capital gains, and return of capital. The fund may also make additional distributions to avoid incurring federal income tax on investment company taxable income and net capital gain of the fund, if any, not included in such regular distributions [1].

In addition to its attractive income distribution, HPS offers investors diversification benefits by investing in a wide range of preferred securities. This diversification can help mitigate the risk associated with individual securities and provide a more stable investment experience. The fund's focus on preferred securities also provides investors with the potential for capital appreciation, as the value of preferred securities can increase over time.

Overall, John Hancock Preferred Income Fund III presents an attractive option for investors seeking a stable and diversified investment. Its monthly distribution, competitive yield, and focus on preferred securities make it a good choice for income-oriented investors looking to hedge traditional equities in uncertain market conditions.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250801to42662/john-hancock-closed-end-funds-declare-monthly-distributions
[2] https://seekingalpha.com/news/4477241-john-hancock-preferred-income-fund-iii-declares-0_11-dividend