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First Trust Dividend and Income Fund (FAV)
Investment Objective/Strategy - The First Trust Dividend and Income Fund is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. Its secondary objective is capital appreciation. The Fund will seek to achieve its investment objectives by investing at least 80% of its managed assets in a diversified portfolio of dividend paying multi-cap equity securities, debt securities and senior secured floating rate loans that offer the potential for attractive income and/or capital appreciation.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerFAV
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorChartwell Investment Partners
Investor Servicing AgentBNY Mellon Investment Servicing (US) Inc.
CUSIP33731L100
Fiscal Year-End11/30
ExchangeNYSE
Inception9/20/2007
Inception Price$20.00
Inception NAV$19.10
Current Fund Data (as of 9/19/2014)
Closing NAV1$10.40
Closing Share Price2$9.28
Discount to NAV10.77%
Total Managed Assets$109,888,317
Common Shares Outstanding8,259,517
Dividend FrequencyQuarterly
Dividend Per Share Amt3$0.1700
Distribution Rate47.33%
Daily Volume58,632
Average 30-Day Daily Volume36,280
Closing Share Price 52-Week High/Low$9.57 / $8.16
Closing NAV 52-Week High/Low$10.56 / $9.25
Expense Ratios (as of 5/31/2014)
Annual ExpensesPercent of
Net Assets
Percent of
Managed
Assets
Management Fees1.26%1.00%
Other Expenses
0.48%
0.38%
Total Operating Expenses1.74%1.38%
 
Leverage Costs0.23%0.18%
 
Total Annual Expenses1.97%1.56%
 
Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
Leverage Information (as of 9/19/2014)6
Total Net Assets with Leverage$109,888,317
Amount Attributable to Common Shares$85,888,317
Amount Attributable to Preferred Shares$0
Amount Attributable to Other Borrowings$24,000,000
Leverage (% of Total Net Assets)21.84%
Top 10 Holdings (as of 7/31/2014)7
Holding Percent
JPMorgan Chase & Co. 3.17%
Royal Dutch Shell PLC 2.27%
Pfizer, Inc. 1.93%
Wells Fargo & Co. 1.90%
Altria Group, Inc. 1.66%
Regal Entertainment Group 1.66%
Intel Corp. 1.64%
AT&T, Inc. 1.62%
U.S. Bancorp 1.61%
Verizon Communications, Inc. 1.60%
S&P Ratings Breakdown for Sr. Loans (as of 7/31/2014)7
  S&P Rating Percent
BBB- 0.39%
BB+ 0.82%
BB 6.45%
BB- 5.93%
B+ 32.59%
B 43.87%
B- 5.42%
CCC+ 2.46%
CCC 0.41%
NR (Privately Rated securities) 1.66%
The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. The credit ratings shown relate to the credit worthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
Share Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Cumulative Total Returns (as of 8/31/2014)5
Period Share Price NAV
3 Months 3.78% 4.18%
1 Year 23.38% 21.87%
3 Years 29.08% 40.68%
5 Years 35.95% 67.47%
Year to Date 11.63% 10.86%
Inception to Date 2.31% 19.92%
Calendar Year Returns (as of 12/31/2013)5
Period Share Price NAV
2008 -30.03% -35.62%
2009 45.83% 21.68%
2010 -0.93% 9.68%
2011 -15.47% -0.59%
2012 -1.81% -0.31%
2013 25.63% 24.61%
Average Annual Returns (as of 8/31/2014)5
Period Share Price NAV
3 Years 8.88% 12.05%
5 Years 6.33% 10.86%
Inception to Date 0.33% 2.65%
Portfolio Information (as of 7/31/2014)7
% of Equity Portfolio with Call Options55.20%
Asset Type Breakdown (as of 7/31/2014)7
Asset Percent
Equity 76.94%
Fixed Income 23.06%
Sector Breakdown (as of 7/31/2014)7
  Sector Percent
Financials 27.33%
Consumer Discretionary 17.26%
Energy 13.09%
Health Care 11.86%
Information Technology 8.55%
Industrials 6.41%
Consumer Staples 5.49%
Telecommunication Services 4.31%
Materials 4.25%
Utilities 1.45%
Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's common shares outstanding.
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared through today's date. Subject to change in the future.
4 Distribution rates are calculated by annualizing the most recent distribution paid or declared through today's date and then dividing by the most recent market price. The distribution consists of the sum of net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Distribution rates may vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. See the fund's 19a-1 Notices, if any, located under the "News & Literature" section of the website for estimates of distribution sources. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
5 Total return is the combination of reinvested dividend income and reinvested capital gains distributions, at prices obtained by the Dividend Reinvestment Plan, if any, and changes in the NAV and Share Price. The NAV total return takes into account the fund's total annual expenses and does not reflect sales load. Past performance is not indicative of future results.
6 Leverage is a technique where a closed-end fund's manager borrows assets at one rate and invests the proceeds from the borrowed assets at another rate, seeking to increase yield and total return. Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
7 Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-Q) that are based on trade date recording of security transactions. Holdings are subject to change.

Risk Considerations

Investment return and market value of an investment in the fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

There can be no assurance as to what portion of the distributions paid to the fund's Common Shareholders will consist of tax-advantaged qualified dividend income.

The Senior Loans in which the fund invests are generally considered to be "high-yield securities". High yield securities are subject to greater market fluctuations and risk of loss than securities with higher ratings. The fund's portfolio is also subject to credit risk and interest rate risk. Interest rate risk is the risk that fixed-income securities will decline in value because of changes in market interest rates. Credit risk is the risk of nonpayment of scheduled contractual repayments whether interest and/or principal payments or payments for services and that the value of a security may decline as a result.

The fund may write (sell) covered call options on all or a portion of the equity securities held in the fund's portfolio. The use of options may require the fund to sell portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation the fund can realize on an investment, or may cause the fund to hold an equity security that it might otherwise sell.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

The risks of investing in the fund are spelled out in the prospectus, shareholder report and other regulatory filings.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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