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S&P Dividend Aristocrats Target 25 Portfolio, 2nd Quarter 2024 Series

The Strategy

The S&P Dividend Aristocrats Target 25 Portfolio in a unit investment trust which is based on the S&P 500 Dividend Aristocrats Index and invests in companies from the index. The index consists of companies from the S&P 500 Index that have increased dividends every year for at least 25 consecutive years. The index captures companies with a history of providing sustainable dividend income and capital appreciation potential, both key factors in total return. The objective of the portfolio is to identify companies with the potential to provide total return through a combination of dividend income and capital appreciation; however, there is no assurance the objective will be met. The strategy is based on these steps:
  • Begin with the stocks that comprise the S&P 500 Dividend Aristocrats Index. Regulated investment companies, limited partnerships and business development companies are not eligible for selection.

  • Rank each stock on three equally weighted factors:

    • Debt-to-equity. Compares a company's long-term debt to their stockholder's equity. Higher levels of this ratio are associated with higher risk, lower levels with lower risk.

    • Price-to-cash flow. Measures the cost of a company's stock for every dollar of cash flow generated. A lower, but positive, ratio indicates investors are paying less for the cash flow generated which can be a sign of value.

    • Return-on-assets. Compares a company's net income to its total assets. The ratio shows how efficiently a company generates net income from its assets.

  • Purchase an approximately equally weighted portfolio of the 25 stocks with the best overall ranking on the three factors with a maximum of seven stocks from any one of the major Global Industry Classification Standard (GICS) market sectors.

It is important to note that the past performance of the strategy is hypothetical and it is not indicative of the future performance of the S&P Dividend Aristocrats Target 25 Portfolio.

Portfolio Selection Chart

Dividend Policy Chart

Annualized Median Dividend Growth Of The Companies Included In The Portfolios Chart

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Mountain Chart

Standard Deviations* Average Annual Total Returns*
S&P 500
Strategy S&P 500
Since 2000 15.46% 14.52% 7.02% 8.90%
20 years 14.88% 14.27% 9.68% 9.19%
15 years 15.36% 15.39% 13.95% 11.24%
10 years 15.18% 16.37% 12.01% 7.88%
5 years 18.51% 20.27% 15.66% 10.38%
3 years 17.53% 20.01% 9.97% 7.68%
*Through 12/29/23

Annual Total Returns
Year S&P 500


2000 -9.10% 6.85%
2001 -11.88% 16.05%
2002 -22.09% -10.19%
2003 28.65% 19.76%
2004 10.87% 17.19%
2005 4.90% 3.63%
2006 15.76% 18.01%
2007 5.56% 5.24%
2008 -36.99% -22.21%
2009 26.46% 21.73%
2010 15.08% 16.90%
2011 2.08% 8.44%
2012 15.98% 12.46%
2013 32.36% 33.44%
2014 13.66% 11.55%
2015 1.38% -2.87%
2016 11.93% 13.34%
2017 21.80% 16.65%
2018 -4.39% -9.06%
2019 31.45% 28.57%
2020 18.39% 2.08%
2021 28.67% 28.85%
2022 -18.12% -9.83%
2023 26.24% 7.44%
3/28/24 10.55% 6.87%

Past performance is no guarantee of future results and the actual current performance of the portfolio may be lower or higher than the hypothetical performance of the strategy. Hypothetical returns for the strategy in certain years were significantly higher than the returns of the S&P 500 Index. Hypothetical strategy returns were the result of certain market factors and events which may not be replicated in the future. You can obtain performance information which is current through the most recent month-end by calling First Trust Portfolios L.P. at 1-800-621-1675 option 2. Investment return and principal value of the portfolio will fluctuate causing units of the portfolio, when redeemed, to be worth more or less than their original cost.

Simulated strategy returns are hypothetical, meaning that they do not represent actual trading, and, thus, may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision making. The hypothetical performance is the retroactive application of the strategy designed with the full benefit of hindsight. Strategy returns reflect a sales charge of 1.85% and estimated annual operating expenses of 0.185%, plus organization costs, but not taxes or commissions paid by the portfolio to purchase securities. Returns assume that dividends are reinvested monthly. Actual portfolio performance will vary from that of investing in the strategy stocks because it may not be invested equally in these stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the S&P 500 Index in certain years and may produce negative results.

Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.

You should consider the portfolio's investment objectives, risks, and charges and expenses carefully before investing. Contact your financial professional 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.



CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Fund Cusip Information
30334Y349 (Cash)
30334Y356 (Reinvest)
30334Y364 (Cash-Fee)
30334Y372 (Reinvest-Fee)
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
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