John Hancock Preferred Income Fund III
HPSFinancial Services · Stock · monthly payer
Forward Yield
10.71%
Annual Dividend
$1.32
Payout Ratio
113%
5-Yr Growth
0.0%
Ex-Date
Sep 11, 2026
Frequency
Monthly
Summary
As of September 2026, John Hancock Preferred Income Fund III (HPS) yields 10.71% ($1.32 per share annually), with a blended fair-value estimate of $15.10 — +16% upside, so it screens as undervalued. Dividend safety grade: C (61/100).
Is HPS a good dividend stock?
Yes, with caveatsJohn Hancock Preferred Income Fund III (HPS) pays a monthly dividend yielding 10.71% ($1.32/yr), with 0 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
Risks
- Cut its dividend in 2020
- Elevated payout ratio (113%)
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 10.71%
- Payout Ratio
- 113%
- Annual Dividend
- $1.32
- 5-Yr Avg Growth
- 0.0%
- Ex-Dividend Date
- Sep 11, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.67
- Market Cap
- $394.6M
- P/E Ratio
- 10.5
- 5-Yr Total Return
- -34%
- 52-Week Range
- $12.80 – $15.68
- Dividend Safety
- C · 61/100
- Ever Cut?
- Yes (2020)
Frequently Asked Questions
HPS Price — Last 12 Months
Daily close
Price Return
1 Year
-16%
3 Years
+8%
5 Years
-34%
52-Week Range
$12.80 – $15.68
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is HPS worth?
Undervaluedmedium confidenceOur blended fair-value estimate for John Hancock Preferred Income Fund III is $15.10 per share, versus a market price of $12.96. That implies 16% of upside — a margin of safety of about 14%.
Fair Value
$15.10
Current Price
$12.96
Upside
+16%
Margin of Safety
14%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 0.1% annual free-cash-flow growth. We model 0.0% — so the price already assumes faster growth than we think is likely.
Assumptions: 7.7% discount rate (CAPM), 0.0% stage-1 growth, 2.5% terminal growth, $1.17 EPS, $1.32 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
HPS Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
Full HPS dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 11, 2026 | — | $0.1100 | regular |
| Aug 13, 2026 | — | $0.1100 | regular |
| Jul 13, 2026 | — | $0.1100 | regular |
| Jun 11, 2026 | — | $0.1100 | regular |
| May 11, 2026 | — | $0.1100 | regular |
| Apr 13, 2026 | — | $0.1100 | regular |
| Mar 12, 2026 | — | $0.1100 | regular |
| Feb 12, 2026 | — | $0.1100 | regular |
| Jan 12, 2026 | — | $0.1100 | regular |
| Dec 11, 2025 | — | $0.1100 | regular |
| Nov 13, 2025 | — | $0.1100 | regular |
| Oct 14, 2025 | — | $0.1100 | regular |
| Sep 12, 2025 | — | $0.1100 | regular |
| Aug 11, 2025 | — | $0.1100 | regular |
Income Calculator
At $1.32 / yr per share
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