Dividend Edge Portfolio, Series 9
In today's low interest rate environment, investors may have the potential to achieve above-average yields through high dividend-paying stocks. Dividend-paying stocks can be used to capture yield
while retaining capital appreciation potential. The Dividend Edge Portfolio seeks to include high-quality dividend-paying companies that each currently have an indicated stock dividend yield that is
greater than the company's highest yielding senior unsecured debt with issuance of at least $250 million, a maturity between 5-10 years, and a S&P credit rating of BBB+ or higher.
Dividends have historically been one of the few constants in the world of investing, contributing nearly half of the stock market's total returns. According to Ibbotson Associates, dividends have
provided approximately 42% of the 10.04% average annual total return on the S&P 500 Index, from 1926 through 2016. The S&P 500 Index is an unmanaged index of 500 stocks used to measure
large-cap U.S. stock market performance. The index cannot be purchased directly by investors. Past performance is no guarantee of future results.
This unit investment trust seeks above-average total return through a combination of
capital appreciation and dividend income; however, there is no assurance the
objective will be met.
Portfolio Selection Process
Through our selection process, we seek to find the
stocks that we believe have the best prospects for
above-average total return.
Identify the Universe
with the companies listed in the S&P 500 Index
(excluding Real Estate Investment Trusts).
Screen The Universe
select companies with an indicated stock dividend
yield that is greater than the company's highest
yielding senior unsecured debt with issuance of at
least $250 million, maturity between 5-10 years
and current S&P bond credit rating of BBB+ or
higher. In addition, we select those companies with
a market capitalization greater than $5 billion.
Select The Portfolio
The final step is to select the 25 highest dividend-yielding stocks
for the portfolio subject to a maximum of approximately 25% in a single sector. The stocks are
approximately equally weighted within the portfolio.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
You should consider the portfolio's
investment objectives, risks, and charges and
expenses carefully before investing.Contact
your financial advisor or call First Trust
Portfolios, L.P. at 1.800.621.1675 to
request a prospectus, which contains this
and other information about the portfolio.
Read it carefully before you invest.
An investment in this unmanaged unit investment trust should be made with an understanding
of the risks involved with owning common stocks, such as an economic recession and the possible
deterioration of either the financial condition of the issuers of the equity securities or the general
condition of the stock market.
Certain of the securities in the portfolio are issued by Real Estate Investment Trusts (REITs).
Companies involved in the real estate industry are subject to changes in the real estate market,
vacancy rates and competition, volatile interest rates and economic recession.
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional
risks, as the share prices of small-cap companies and certain mid-cap companies are often more
volatile than those of larger companies due to several factors, including limited trading volumes,
products, financial resources, management inexperience and less publicly available information.
An investment in a portfolio containing equity securities of foreign issuers is subject to additional
risks, including currency fluctuations, political risks, withholding, the lack of adequate financial
information, and exchange control restrictions impacting foreign issuers.
The value of the securities held by the trust may be subject to steep declines or increased volatility
due to changes in performance or perception of the issuer.
Although this portfolio terminates in approximately 15 months, the strategy is long-term.
Investors should consider their ability to pursue investing in successive portfolios, if available.
There may be tax consequences unless units are purchased in an IRA or other qualified plan.