John Hancock Diversified Income Fund Common Shares of Beneficial Interest (HEQ)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this closed-end fund as an investor, not a trader. At the 2026-10-13 close of $11.22 and a $138.1 million market cap, FairStock's calculated P/E is 6.68, the dividend yield is 8.91%, and its Graham Number is $21.78, implying a 48.48% margin of safety. On those raw numbers, it looks cheap and income-rich. But the quality evidence is thin. The fund invests in U.S. equities across sectors and market caps and uses call options and equity futures. No P/B, ROE, ROCE, D/E, revenue growth, profit growth, or beta are provided. FairStock's overall score is only 45/100, and its Piotroski F-Score is 1/9, which is a serious warning about financial strength and consistency. The Altman Z-Score is 4.24, but for a fund that measure is less meaningful than NAV and distribution coverage. The Lynch category is none because only 0 years of filed results are available, and three are needed to judge consistency. An 8.91% yield can be attractive, but I cannot tell whether it is covered by income or returning capital. The 52-week range of $10.50 to $12.00 shows the price is not at an extreme. The apparent discount to Graham Number may reflect uncertain earnings rather than a true bargain. Without durable earnings power, a moat, or a long filed record, this is a speculative income vehicle, not a high-conviction value compounder.

In plain English: The fund owns a mix of U.S. stocks and uses options and futures, aiming to pay high income. It trades near the middle of its 52-week range and offers a high payout, but the available quality and safety checks look weak, and there is too little financial history to judge consistency. Its price looks inexpensive compared with its earnings, but that cheapness comes with real uncertainty.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer