John Hancock

Premium Dividend Fund

Ticker: PDT
Semiannual report 4/30/16

Managed distribution plan

The fund has adopted a managed distribution plan (Plan). Under the Plan, the fund makes monthly distributions of an amount equal to $0.09 per share, which will be paid monthly until further notice. On June 23, 2016, the Board of Trustees of the fund voted to increase the monthly distribution to an amount equal to $0.0975 per share. The increase to the distribution amount will be effective with the July monthly distribution that is scheduled to be paid on July 29, 2016. The fund may make additional distributions (i) for purposes of not incurring federal income tax on investment company taxable income and net capital gain, if any, not included in such regular distributions and (ii) for purposes of not incurring federal excise tax on ordinary income and capital gain net income, if any, not included in such regular monthly distributions.

The Plan provides that the Board of Trustees of the fund may amend the terms of the Plan or terminate the Plan at any time without prior notice to the fund's shareholders. The Plan will be subject to periodic review by the fund's Board of Trustees.

You should not draw any conclusions about the fund's investment performance from the amount of the fund's distributions or from the terms of the Plan. The fund's total return at NAV is presented in the Financial highlights.

With each distribution that does not consist solely of net investment income, the fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. The fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."

Dear shareholder,

The past six months proved to be a challenging time for U.S. equity investors. Many market indexes tumbled in the winter months amid concerns about slowing global growth, particularly in China. The volatility extended to commodity markets, as oil prices hit multi-year lows in February before rebounding toward the end of the period. The investment landscape improved late in the period as stocks and other so-called risk assets regained positive momentum and most U.S. indexes finished the period with modest gains.

Volatile market environments are naturally unsettling. But despite the recent turbulence, we believe the economic picture in the United States offers reasons for optimism. Unemployment and inflation both remain low, while the housing market and consumer demand have both shown signs of resilience. Nonetheless, the volatility that characterized the markets at the start of the year could be with us for some time.

At John Hancock Investments, portfolio risk management is a critical part of our role as an asset manager, and our dedicated risk team is focused on these issues every day. We continually strive for new ways to analyze potential risks and to ensure that we have adequate liquidity tools in place. As always, your best resource in times like these is your financial advisor, who can help make sure your portfolio is sufficiently diversified to meet your long-term objectives and to withstand the inevitable bumps along the way.

On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to thank you for the continued trust you've placed in us.

Sincerely,

Andrew G. Arnott
President and Chief Executive Officer
John Hancock Investments

This commentary reflects the CEO's views as of April 30, 2016. They are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.

John Hancock
Premium Dividend Fund

Table of contents

2		Your fund at a glance
4		Discussion of fund performance
8		Fund's investments
13		Financial statements
17		Financial highlights
18		Notes to financial statements
26		Additional information
27		Shareholder meeting
28		More information

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       1

INVESTMENT OBJECTIVE

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The fund seeks to provide high current income, consistent with modest growth of capital.

AVERAGE ANNUAL TOTAL RETURNS AS OF 4/30/16 (%)

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The index shown is a blended index that is 70% Bank of America Merrill Lynch Preferred Stock DRD Eligible Index and 30% S&P 500 Utilities Index.

The Bank of America Merrill Lynch Preferred Stock DRD Eligible Index consists of investment-grade fixed-rate U.S. dollar-denominated preferred securities and fixed-to-floating-rate securities. The index includes securities having a minimum remaining term of at least one year, Dividend Received Deduction (DRD) eligible preferred stock and senior debt.

The S&P 500 Utilities Index is a capitalization-weighted index that consists of companies in the S&P 500 Index that are primarily involved in water, electrical power, and natural gas distribution industries.

It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.

The fund's most recent performance and current annualized distribution rate can be found at jhinvestments.com.

If a shareholder purchases shares at a time when the market price is at a premium to the NAV or sells shares at a time when the market price is at a discount to the NAV, the shareholder may sustain losses.

The performance data contained within this material represents past performance, which does not guarantee future results.

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       2

PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS

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Dividend-paying securities generated solid gains

Falling interest rates outside of the United States, fears of a recession, and heightened stock market volatility stoked demand for utilities, energy-related common stocks, and preferred securities.

Energy-related holdings performed well

Pipeline company holdings benefited from a rebound in oil prices, as well as investors' growing demand for energy companies whose revenues are driven by fees rather than commodity prices.

Foreign banks detracted

Negative interest rates in Europe and Japan eroded bank earnings.

PORTFOLIO COMPOSITION AS OF 4/30/16 (%)

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A note about risks

As is the case with all closed-end funds, shares of this fund may trade at a discount or a premium to the fund's net asset value (NAV). An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested. There is no guarantee prior distribution levels will be maintained, and distributions may include a substantial return of capital. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Investments in higher-yielding, lower-rated securities are subject to a higher risk of default. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly, which may affect fund performance. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. The fund's use of leverage creates additional risks, including greater volatility of the fund's NAV, market price, and returns. There is no assurance that the fund's leverage strategy will be successful. The fund will normally invest at least 25% of its managed assets in securities of companies in the utilities industry. Such an investment focus makes the fund more susceptible to factors adversely affecting the utilities industry than a more broadly diversified fund. Sector investing is subject to greater risks than the market as a whole. Hedging, derivatives, and other strategic transactions may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment.

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       3

What was the market environment like for dividend-paying securities during the six months ended April 30, 2016?

Dividend-paying securities—which are traditionally viewed as a more attractive investment during times of economic uncertainty, heightened market volatility, and low interest rates—generated solid gains. At the beginning of the period, many dividend-paying stocks were under pressure in response to expectations that U.S. interest rates were poised to rise. Instead, long-term interest rates fell in early 2016, making income-producing investments relatively more attractive to many investors. As compensation for their higher risk, dividend-paying securities tend to pay more than comparable bonds. Fears of recession, which were felt most acutely in February, further stoked demand for dividend-paying securities, offering haven to investors seeking refuge from significant declines in broader stock market averages.

While utility securities benefited the most from those trends, other segments of the dividend-paying universe were further bolstered by factors unique to their respective sectors. Energy common stocks, for example, enjoyed a partial, yet impressive, rebound from their extremely poor performance in 2015. Oil prices moved higher, leading bargain-seeking investors looking to the energy sector with expectations that revenue and earnings could rebound as well if the current oil glut dwindled as production halts started to weigh on supply. Preferred securities were helped by muted new issuance, as most issuers refrained from bringing new preferred securities to the marketplace. With common stock dividend cuts continuing to accelerate during the past six months, there was growing demand for preferred dividend payouts, which have precedence over common stock dividends. While financial stocks were generally down for the period, many financial preferreds, led by U.S. banks, also fared comparatively well, as they restructured and strengthened their capital structures since the 2007/2008 financial crisis.

What's your view on dividend-paying securities?

Given their strong gains during the prior six months, dividend-paying securities ended the period less attractively valued than they were at the beginning of the period; their upside may be limited over the short term. That said, we believe dividend-paying securities can hold on to their recent

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       4

"Dividend-paying securities—which are traditionally viewed as a more attractive investment during times of economic uncertainty, heightened market volatility, and low interest rates—generated solid gains."

gains for the balance of 2016. The U.S. Federal Reserve (Fed) has lowered its forward rate hike guidance to indicate a more gradual pace than the central bank had suggested at the end of 2015. Given the Fed's more dovish tone, our view is that rate hikes in 2016 will be few and far between, totaling one or two 0.25% increases and most likely occurring in the second half of the year. In our view, dividend-paying securities should be able to weather a couple of small and gradual increases in the federal funds rate. Furthermore, low long-term U.S. Treasury yields make the comparatively high yields offered by dividend-paying securities more attractive to income-seeking investors. Muted supply should also be supportive. We don't foresee any meaningful uptick in the supply of dividend-paying preferred or common stocks on the horizon.

What holdings contributed to performance?

Some of the portfolio's energy-related investments were among its best performers for the six-month period. Pipeline companies, such as the common stock of Spectra Energy Corp. and Columbia Pipeline Group, Inc., performed quite well. Investors began to recognize that pipeline company revenues were fee based rather than commodity price dependent. Spectra's decision to raise its dividend in February was a plus for that holding. Columbia Pipeline rallied further on the mid-March announcement of its planned merger with TransCanada Corporation. Also in the energy sector, Chevron Corp. and ONEOK, Inc. generated positive returns.

SECTOR COMPOSITION AS OF 4/30/16 (%)

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SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       5

"In our view, dividend-paying securities should be able to weather a couple of small and gradual increases in the federal funds rate."

Among holdings in the utilities sector, Black Hills Corp. was one of the portfolio's standouts. The company completed the acquisition of a natural gas utility expected to enhance regulated earnings and lower its risk profile. Other positive performers in this sector included Alliant Energy Corp., Talen Energy Corp., and Questar Corp.

What hurt the fund's performance?

Detracting from the fund's results was the preferred stock of Deutsche Bank Contingent Capital Trust. Interest rates in some European countries went negative during the period, eroding bank earnings on the Continent; concerns about nonperforming loans also weighed on the stock. Another disappointment was the preferred stock of DTE Energy Company, whose price languished as it moved closer to its potential December 2016 call date. Given that the company can call these securities at par at year end, their upside potential was limited. Conoco Phillips and Kinder Morgan Inc. also generated negative returns. Our use of derivative such as futures, options, and swaps also had a negative impact on performance.

Were there any significant changes to the portfolio?

At about midpoint in the period, we sold some of the fund's lower-yielding utility holdings at prices we viewed as attractive given the very strong demand for such stocks at the time. In many cases, we used the proceeds from those sales to purchase more of the higher-yielding pipeline companies the fund already held, including Spectra. We felt that these securities were very attractively valued, especially given our view that oil prices had bottomed at that time and were set to move higher. We

TOP 10 ISSUERS AS OF 4/30/16 (%)

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Bank of America Corp.	4.4
PPL Corp.	4.1
JPMorgan Chase & Co.	3.6
Morgan Stanley	3.3
SCE Trust	3.2
Interstate Power & Light Company	3.1
Wells Fargo & Company	2.9
Baltimore Gas & Electric Company	2.9
Entergy, Inc.	2.9
DTE Energy Company	2.9
TOTAL	33.3
As a percentage of total investments.
Cash and cash equivalents are not included.

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       6

were further encouraged by the fact that pipeline companies were reporting that their revenues hadn't been negatively affected by low oil prices, and that some of these companies actually raised their dividends. We also increased the fund's preferred shares in Kinder Morgan.

MANAGED BY

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	Gregory K. Phelps On the fund since 1995 Investing since 1981
	Joseph H. Bozoyan, CFA On the fund since 2015 Investing since 1993

The views expressed in this report are exclusively those of Gregory K. Phelps, John Hancock Asset Management, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund's investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       7

 

	As of 4-30-16 (unaudited)
													Shares			Value
	Preferred securities 100.7% (67.7% of Total investments)															$783,142,989
	(Cost $730,405,065)
	Consumer staples 2.5%															19,418,660
	Food and staples retailing 2.5%
	Ocean Spray Cranberries, Inc., Series A, 6.250% (S)												224,250			19,418,660
	Energy 3.0%															23,565,983
	Oil, gas and consumable fuels 3.0%
	Kinder Morgan, Inc., 9.750%												533,650			23,565,983
	Financials 57.3%															445,524,416
	Banks 31.2%
	Bank of America Corp., 6.375% (Z)												980,000			25,274,200
	Bank of America Corp., 6.625% (Z)												360,000			9,586,800
	Bank of America Corp., Depositary Shares, Series D, 6.204% (Z)												630,000			16,216,200
	Barclays Bank PLC, Series 3, 7.100%												192,500			4,989,600
	Barclays Bank PLC, Series 5, 8.125%												360,000			9,496,800
	BB&T Corp., 5.625% (Z)												770,000			19,804,400
	BB&T Corp. (Callable 11-1-17), 5.200% (Z)												205,000			5,186,500
	BB&T Corp. (Callable 6-1-18), 5.200% (Z)												110,000			2,777,500
	Citigroup, Inc. (6.875% to 11-15-23, then 3 month LIBOR + 4.130%) (Z)												137,223			3,785,983
	Citigroup, Inc. (7.125% to 9-30-23, then 3 month LIBOR + 4.040%) (Z)												195,650			5,470,374
	Citigroup, Inc., Depositary Shares, Series AA, 8.125% (Z)												338,830			9,734,586
	JPMorgan Chase & Co., 5.450% (Z)												490,000			12,485,200
	JPMorgan Chase & Co., 5.500% (Z)												200,000			5,058,000
	JPMorgan Chase & Co., 6.100% (Z)												650,000			16,984,500
	JPMorgan Chase & Co., 6.300% (Z)												245,000			6,455,750
	JPMorgan Chase & Co., 6.700% (Z)												35,000			967,050
	Santander Holdings USA, Inc., Series C, 7.300%												500,000			12,875,000
	The PNC Financial Services Group, Inc., 5.375% (Z)												180,000			4,642,200
	The PNC Financial Services Group, Inc. (6.125% to 5-1-22, then 3 month LIBOR + 4.067%) (Z)												311,600			9,008,356
	U.S. Bancorp, 5.150% (Z)												500,000			13,125,000
	U.S. Bancorp (6.000% to 4-15-17, then 3 month LIBOR + 4.861%) (Z)												160,000			4,225,600
	U.S. Bancorp (6.500% to 1-15-22, then 3 month LIBOR + 4.468%) (Z)												351,000			10,375,560
	Wells Fargo & Company, 6.000% (Z)												205,000			5,459,150
	Wells Fargo & Company, 8.000% (Z)												1,017,000			28,648,890
	Capital markets 17.1%
	Deutsche Bank Contingent Capital Trust II, 6.550% (Z)												287,000			7,146,300
	Deutsche Bank Contingent Capital Trust III, 7.600%												662,000			17,159,040
	Morgan Stanley, 6.625% (Z)												842,557			22,782,741

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       8

													Shares			Value
	Financials  (continued)
	Capital markets  (continued)
	Morgan Stanley (6.375% to 10-15-24, then 3 month LIBOR + 3.708%) (Z)												249,227			$6,609,500
	Morgan Stanley (7.125% to 10-15-23, then 3 month LIBOR + 4.320%) (Z)												300,000			8,625,000
	State Street Corp., 5.250% (Z)												1,015,000			26,613,300
	State Street Corp., 6.000% (Z)												80,000			2,161,600
	State Street Corp. (5.900% to 3-15-24, then 3 month LIBOR + 3.108%) (Z)												25,000			679,250
	The Bank of New York Mellon Corp., 5.200% (Z)												442,000			11,337,300
	The Goldman Sachs Group, Inc., 5.950% (Z)												920,000			23,607,200
	The Goldman Sachs Group, Inc., Series B, 6.200%												250,000			6,370,000
	Consumer finance 5.5%
	Capital One Financial Corp., 6.000% (Z)												100,000			2,590,000
	Capital One Financial Corp., 6.250% (Z)												81,196			2,150,070
	Capital One Financial Corp., 6.700% (Z)												105,000			2,881,200
	Capital One Financial Corp., 6.200% (Z)												80,000			2,112,800
	HSBC Finance Corp., Depositary Shares, Series B, 6.360%												454,000			11,776,760
	SLM Corp., Series A, 6.970%												445,500			21,049,875
	Insurance 1.6%
	Aegon NV, 6.500%												75,000			1,961,250
	Prudential Financial, Inc., 5.750% (Z)												50,000			1,319,500
	Prudential PLC, 6.750% (Z)												175,000			4,620,000
	W.R. Berkley Corp., 5.625%												190,377			4,843,191
	Real estate investment trusts 1.9%
	Senior Housing Properties Trust, 5.625%												510,000			12,877,500
	Ventas Realty LP, 5.450%												63,000			1,617,840
	Industrials 0.5%															3,551,850
	Machinery 0.5%
	Stanley Black & Decker, Inc., 5.750%												135,000			3,551,850
	Telecommunication services 6.3%															49,259,085
	Diversified telecommunication services 3.9%
	Qwest Corp., 6.125%												107,500			2,632,675
	Qwest Corp., 7.375%												1,021,000			26,096,760
	Verizon Communications, Inc., 5.900% (Z)												60,000			1,646,250
	Wireless telecommunication services 2.4%
	Telephone & Data Systems, Inc., 5.875%												100,000			2,499,000
	Telephone & Data Systems, Inc., 6.625%												285,000			7,335,900
	Telephone & Data Systems, Inc., 6.875%												170,000			4,338,400
	United States Cellular Corp., 6.950%												185,000			4,710,100

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       9

													Shares			Value
	Utilities 31.1%															$241,822,995
	Electric utilities 24.5%
	Duke Energy Corp., 5.125% (Z)												180,000			4,734,000
	Entergy Arkansas, Inc., 6.450%												650,000			16,770,000
	Entergy Mississippi, Inc., 6.250%												667,000			16,975,150
	Gulf Power Company, 5.600%												52,400			5,365,619
	HECO Capital Trust III, 6.500%												181,000			4,787,450
	Interstate Power & Light Company, 5.100%												1,340,000			36,287,200
	NextEra Energy Capital Holdings, Inc., 5.125% (Z)												185,000			4,708,250
	NextEra Energy Capital Holdings, Inc., 5.700% (Z)												320,000			8,291,200
	NSTAR Electric Company, 4.250%												13,347			1,254,618
	NSTAR Electric Company, 4.780%												100,000			9,975,000
	PPL Capital Funding, Inc., 5.900% (Z)												1,450,320			38,680,034
	SCE Trust I, 5.625%												265,000			6,781,350
	SCE Trust II, 5.100%												1,208,500			30,514,625
	The Southern Company, 6.250% (Z)												155,000			4,195,850
	Union Electric Company, 3.700%												12,262			1,179,835
	Multi-utilities 6.6%
	Baltimore Gas & Electric Company, Series 1993, 6.700%												20,250			2,045,884
	Baltimore Gas & Electric Company, Series 1995, 6.990%												134,000			13,818,080
	BGE Capital Trust II, 6.200%												690,000			17,940,000
	DTE Energy Company, 5.250%												235,000			6,088,850
	DTE Energy Company, 6.500%												180,000			4,698,000
	Integrys Holding, Inc. (6.000% to 8-1-23, then 3 month LIBOR + 3.220%)												255,000			6,732,000
	Common stocks 47.9% (32.2% of Total investments)															$372,310,944
	(Cost $263,266,052)
	Energy 8.8%															68,070,317
	Oil, gas and consumable fuels 8.8%
	Chevron Corp.												67,000			6,846,060
	Columbia Pipeline Group, Inc.												300,000			7,686,000
	ConocoPhillips												90,000			4,301,100
	Kinder Morgan, Inc.												262,000			4,653,120
	Royal Dutch Shell PLC, ADR, Class A												244,500			12,931,605
	Spectra Energy Corp. (L)(Z)												1,012,230			31,652,432
	Telecommunication services 2.9%															22,877,400
	Diversified telecommunication services 2.9%
	AT&T, Inc. (L)(Z)												340,000			13,198,800
	Verizon Communications, Inc. (L)(Z)												190,000			9,678,600
	Utilities 36.2%															281,363,227
	Electric utilities 15.9%
	American Electric Power Company, Inc.												200,000			12,700,000
	Avangrid, Inc. (I)(L)(Z)												381,500			15,298,150

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       10

													Shares			Value
	Utilities  (continued)
	Electric utilities  (continued)
	Duke Energy Corp. (L)(Z)												285,000			$22,452,300
	Eversource Energy												405,000			22,858,200
	FirstEnergy Corp. (L)(Z)												301,450			9,824,256
	OGE Energy Corp. (L)(Z)												430,000			12,723,700
	Pinnacle West Capital Corp.												50,000			3,632,500
	PPL Corp. (L)(Z)												240,000			9,033,600
	The Southern Company (L)(Z)												75,000			3,757,500
	Xcel Energy, Inc. (L)(Z)												280,000			11,208,400
	Gas utilities 2.1%
	Atmos Energy Corp.												80,000			5,804,000
	ONE Gas, Inc.												42,500			2,484,975
	Questar Corp.												332,800			8,343,296
	Multi-utilities 18.2%
	Alliant Energy Corp.												400,000			28,208,000
	Black Hills Corp.												220,000			13,329,800
	CenterPoint Energy, Inc. (L)(Z)												1,065,000			22,844,250
	Dominion Resources, Inc. (L)(Z)												240,000			17,152,800
	DTE Energy Company (L)(Z)												250,000			22,290,000
	National Grid PLC, ADR												235,000			16,922,350
	NiSource, Inc.												440,000			9,992,400
	Vectren Corp.												215,000			10,502,750
							Yield* (%)			Maturity date			Par value^			Value
	Short-term investments 0.2% (0.1% of Total investments)															$1,915,990
	(Cost $1,915,990)
	U.S. Government Agency 0.2%															1,762,990
	Federal Home Loan Bank Discount Note						0.200			05-02-16			1,763,000			1,762,990
													Par value^			Value
	Repurchase agreement 0.0%															153,000
	Repurchase Agreement with State Street Corp. dated 4-29-16 at 0.030% to be repurchased at $153,000 on 5-2-16, collateralized by $160,000 U.S. Treasury Notes, 1.125% due 2-28-21 (valued at $158,600, including interest)												153,000			$153,000
	Total investments (Cost $995,587,107)† 148.8%															$1,157,369,923
	Other assets and liabilities, net (48.8%)															($379,765,855	)
	Total net assets 100.0%															$777,604,068

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       11

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.

^All par values are denominated in U.S. dollars unless otherwise indicated.

Key to Security Abbreviations and Legend

ADR

American Depositary Receipts

LIBOR

London Interbank Offered Rate

(I)

Non-income producing security.

(L)

A portion of this security is on loan as of 4-30-16, and is a component of the fund's leverage under the Liquidity Agreement. The value of securities on loan amounted to $181,470,658.

(S)

These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration.

(Z)

All or a portion of this security is pledged as collateral pursuant to the Liquidity Agreement. Total collateral value at 4-30-16 was $579,151,727.

*

Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.

†

At 4-30-16, the aggregate cost of investment securities for federal income tax purposes was $996,701,936. Net unrealized appreciation aggregated to $160,667,987, of which $171,217,518 related to appreciated investment securities and $10,549,531 related to depreciated investment securities.

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       12

Assets
Investments, at value (Cost $995,587,107)		$1,157,369,923
Cash held at broker for futures contracts		1,075,000
Cash segregated at custodian for derivative contracts		540,000
Dividends and interest receivable		3,655,752
Other receivables and prepaid expenses		40,707
Total assets		1,162,681,382
Liabilities
Due to custodian		147,528
Liquidity agreement payable		383,700,000
Swap contracts, at value		597,632
Payable for futures variation margin		94,060
Interest payable		339,581
Payable to affiliates
Accounting and legal services fees		94,427
Trustees' fees		3,110
Other liabilities and accrued expenses		100,976
Total liabilities		385,077,314
Net assets		$777,604,068
Net assets consist of
Paid-in capital		$593,382,222
Undistributed net investment income		2,766,365
Accumulated net realized gain (loss) on investments, futures contracts and swap agreements		19,677,352
Net unrealized appreciation (depreciation) on investments, futures contracts, translation of assets and liabilities in foreign currencies and swap agreements		161,778,129
Net assets		$777,604,068
Net asset value per share
Based on 48,266,621 shares of beneficial interest outstanding — unlimited number of shares authorized with no par value		$16.11

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       13

	Investment income
	Dividends									$30,375,592
	Interest									701
	Less foreign taxes withheld									(60,489											)
	Total investment income									30,315,804
	Expenses
	Investment management fees									4,302,514
	Administrative service fees									556,776
	Transfer agent fees									68,677
	Trustees' fees									23,737
	Printing and postage									178,941
	Professional fees									51,128
	Custodian fees									45,101
	Stock exchange listing fees									24,290
	Interest expense									1,973,354
	Other									16,064
	Total expenses									7,240,582
	Less expense reductions									(40,467											)
	Net expenses									7,200,115
	Net investment income									23,115,689
	Realized and unrealized gain (loss)
	Net realized gain (loss) on
	Investments and foreign currency transactions									22,349,573
	Futures contracts									(1,493,749											)
	Swap contracts									(621,245											)
										20,234,579
	Change in net unrealized appreciation (depreciation) of
	Investments and translation of assets and liabilities in foreign currencies									27,853,182
	Futures contracts									734,987
	Swap contracts									594,945
										29,183,114
	Net realized and unrealized gain									49,417,693
	Increase in net assets from operations									$72,533,382

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       14

										Six months ended 4-30-16												Year ended 10-31-15
										(unaudited)
	Increase (decrease) in net assets
	From operations
	Net investment income									$23,115,689												$47,729,043
	Net realized gain									20,234,579												7,335,542
	Change in net unrealized appreciation (depreciation)									29,183,114												(17,750,210				)
	Increase in net assets resulting from operations									72,533,382												37,314,375
	Distributions to shareholders
	From net investment income									(26,095,277				)								(43,632,491				)
	From net realized gain									—												(9,786,885				)
	Total distributions									(26,095,277				)								(53,419,376				)
	From fund share transactions
	Repurchased									(1,402,564				)								(16,344,551				)
	Total increase (decrease)									45,035,541												(32,449,552				)
	Net assets
	Beginning of period									732,568,527												765,018,079
	End of period									$777,604,068												$732,568,527
	Undistributed net investment income									$2,766,365												$5,745,953
	Share activity
	Shares outstanding
	Beginning of period									48,372,321												49,590,757
	Shares repurchased									(105,700				)								(1,218,436				)
	End of period									48,266,621												48,372,321

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       15

	Cash flows from operating activities
	Net increase in net assets from operations			$72,533,382
	Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
	Long-term investments purchased			(76,309,123)
	Long-term investments sold			71,839,439
	Decrease in short-term investments			3,385,010
	Decrease in cash held at broker for futures contracts			86,000
	Decrease in cash segregated at custodian for derivative contracts			680,000
	Decrease in receivable for investments sold			5,835,172
	Increase in dividends and interest receivable			(148,121)
	Decrease in unrealized appreciation/depreciation of swap contracts			(594,945)
	Increase in other receivables and prepaid expenses			(24,386)
	Increase in payable for futures variation margin			26,877
	Increase in payable to affiliates			642
	Decrease in other liabilities and accrued expenses			(15,795)
	Increase in custodian overdraft			147,528
	Increase in interest payable			43,895
	Net change in unrealized (appreciation) depreciation on investments			(27,849,273)
	Net realized gain on investments			(22,349,573)
	Net cash provided by operating activities			$27,286,729
	Cash flows from financing activities
	Repurchase of common shares			($1,402,564)
	Distributions to common shareholders net of reinvestments			(26,095,277)
	Net cash used in financing activities			($27,497,841		)
	Net decrease in cash			($211,112		)
	Cash at beginning of period			$211,112
	Cash at end of period			—
	Supplemental disclosure of cash flow information:
	Cash paid for interest			$1,929,459

SEE NOTES TO FINANCIAL STATEMENTS

SEMIANNUAL REPORT   |   JOHN HANCOCK PREMIUM DIVIDEND FUND       16

	COMMON SHARES Period Ended																								4-30-161																		10-31-15																					10-31-14																		10-31-13															10-31-12												10-31-11
	Per share operating performance
	Net asset value, beginning of period																								$15.14																		$15.43																					$14.01																		$14.56															$13.22												$12.16
	Net investment income2																								0.48																		0.97																					0.98																		0.96															0.89												0.88
	Net realized and unrealized gain (loss) on investments																								1.03																		(0.21													)								1.74																		(0.60							)								1.36												1.09
	Total from investment operations																								1.51																		0.76																					2.72																		0.36															2.25												1.97
	Less distributions to common shareholders
	From net investment income																								(0.54										)								(0.89													)								(0.97										)								(0.91							)								(0.91				)								(0.91							)
	From net realized gain																								—																		(0.20													)								(0.34										)								—															—												—
	Total distributions																								(0.54										)								(1.09													)								(1.31										)								(0.91							)								(0.91				)								(0.91							)
	Anti-dilutive impact of repurchase plan																								—										3,4								0.04													3								0.01										3								—															—												—
	Net asset value, end of period																								$16.11																		$15.14																					$15.43																		$14.01															$14.56												$13.22
	Per share market value, end of period																								$15.45																		$13.68																					$13.67																		$12.51															$14.32												$12.30
	Total return at net asset value (%)5,6																								10.49										7								6.18																					22.07																		2.94															17.61												17.23
	Total return at market value (%)6																								17.27										7								8.29																					21.12																		(6.54							)								24.32												13.17
	Ratios and supplemental data
	Net assets applicable to common shares, end of period (in millions)																								$778																		$733																					$765																		$701															$728												$660
	Ratios (as a percentage of average net assets):
				Expenses before reductions																					1.97										9								1.86																					1.79																		1.77															1.85												1.98							8
				Expenses including reductions10																					1.96										9								1.85