Dividend Growth Portfolio, Series 20
When it comes to investing for income and growth, investors have several choices. We believe that companies that have shown a solid history of distributing dividends to shareholders are a wise choice for prudent investors to consider as part of their overall investment plan. The Dividend Growth Portfolio seeks to include high quality dividend-paying companies with the capacity to increase their dividends over time.
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.
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
We begin with the companies listed in the S&P 1500 Index that
have market capitalizations greater than $1 billion.
Screen the Universe
The next step is to look for those companies with a history of increasing dividend payments and above-average dividend yields. These screens are designed to identify companies with stable cash flows and dividend income potential.
Select Companies With Attractive Valuations for the Portfolio
The final step in our process is to select companies based on the fundamental analysis of our team of research analysts. The stocks selected for the portfolio are those that meet our investment objectives, trade at attractive valuations and, in our opinion, are likely to exceed market expectations of future cash flows.
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.
|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.
You should be aware that the portfolio is concentrated in stocks in the consumer products sector
which involves additional risks, including limited diversification. The companies engaged in the
consumer products industry are subject to global competition, changing government regulations
and trade policies, currency fluctuations, and the financial and political risks inherent in producing
products for foreign markets.
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
This UIT is a buy and hold strategy and
investors should consider their ability to hold
the trust until maturity. There may be tax
consequences unless units are purchased in an
IRA or other qualified plan.
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 issuers.