BOSTON, April 5 /PRNewswire-FirstCall/ -- John Hancock Patriot Premium
Dividend Fund I (NYSE: PDF) declared a new monthly dividend today as follows:
Declaration Date: April 5, 2005
Ex Date: April 13, 2005
Record Date: April 15, 2005
Payment Date: April 29, 2005
Dividend Amount: $0.046
This dividend equates to an annualized yield of 5.95 percent, based on the
fund's closing market price as of April 4, 2005. The yield represented by the
new dividend level remains attractive relative to other investment-grade
income-oriented securities.
In keeping with management's approach of only paying income earned, the
Fund's dividend has been reduced. Since July 1999, when the Fund's dividend
rate was set at $0.054 per share, macro economic factors have put pressure on
the Fund's dividend. Short-term interest rates have been rising and as a
result, the cost of borrowing has increased. Over the long-term, the yields on
the securities in which the fund invests namely DRD-preferreds and utility
common stocks have declined. In addition, a number of higher-yielding
preferred securities in the Fund's portfolio have been refinanced or called,
forcing the Fund to reinvest at lower yields. Management believes an
amendment is necessary in order to set the dividend at a level that will
increase it's sustainability over the long-term.
John Hancock Patriot Premium Dividend Fund I is a diversified, closed-end
fund. The Fund's investment objective is to provide a high current income,
consistent with modest growth of capital for holders of its common shares of
beneficial interest. The Fund invests at least 80% of its assets in a
diversified portfolio of dividend-paying securities.
John Hancock Funds, a premier investment management company, managed $31.3
billion in open-end funds, closed-end funds, private accounts and retirement
plans for individual and institutional investors and related party assets as
of December 31, 2004. Additional information about the company can be found
on the website: http://www.jhfunds.com.
John Hancock Funds is a wholly owned subsidiary of John Hancock Financial
Services, Inc., which is a unit of Manulife Financial Corporation, a leading
Canadian-based financial services group serving millions of customers in 19
countries and territories worldwide. Operating as Manulife Financial in
Canada and most of Asia, and primarily through John Hancock in the United
States, the Company offers clients a diverse range of financial protection
products and wealth management services through its extensive network of
employees, agents and distribution partners. Funds under management by
Manulife Financial and its subsidiaries were Cdn$348 billion (US$289 billion)
as of December 31, 2004. Manulife Financial Corporation trades as 'MFC' on
the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can
be found on the Internet at http://www.manulife.com .
The John Hancock unit, through its insurance companies, comprises one of
the largest life insurers in the United States. John Hancock Financial
Services offers a broad range of financial products and services, including
whole life, term life, variable life, and universal life insurance, as well as
college savings products, fixed and variable annuities, long-term care
insurance, mutual funds and various forms of business insurance.
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SOURCE John Hancock Patriot Premium Dividend Fund I
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CONTACT:
Kimberley Dietrich, +1-617-375-0311, or
Investors: +1-800-843-0090, both of John Hancock
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