Technology Dividend, Series 21
Historically, technology companies were recognized for their growth potential and paid little in
dividends. During the internet build-out phase of the 1990s, many companies in the sector were
new businesses, committing capital to research and development and merger and acquisition
efforts. Since then, technology has evolved to become an indispensable part of our lives. Internet
usage continues to grow at a rapid pace. Demand is rising for products such as mobile phones,
wireless connectivity, computer devices, semiconductors and cloud computing.
Today, many technology companies have matured into companies with strong balance sheets and
financial flexibility and are paying dividends, while continuing to reinvest in their businesses. The
estimated price-to-earnings ratios (P/E) for the S&P 500 Information Technology Index for 2017 and
2018 were 18.12 and 16.19, respectively, as of 4/12/17, according to Bloomberg. The 10-year average
P/E was 18.05. We believe future growth potential combined with dividend payouts make technology an
This unit investment trust seeks above-average
total return by investing in dividend-paying
companies in the technology sector; however,
there is no assurance the objective will be met.
Dividend Contribution by Sector
Information technology companies in the S&P 500 Index are now the largest contributor of dividends
from the index. Technology companies account for 15.58% of S&P 500 companies' projected dividends in
the next 12 months, having grown significantly from contributing only 5.14% in 2004.
|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 information technology sector which involves
additional risks, including limited diversification. The
companies engaged in the information technology sector are
subject to fierce competition, high research and development
costs, and their products and services may be subject to rapid
obsolescence. Technology company stocks, especially those
which are Internet-related, may experience extreme price and
volume fluctuations that are often unrelated to their
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. Risks associated with investing in
foreign securities may be more pronounced in emerging
markets where the securities markets are substantially smaller,
less liquid, less regulated and more volatile than the U.S. and
developed 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.
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.