Brookmont Equity Dividend Portfolio, Series 16
Brookmont Capital Management ("Brookmont") is an employee-owned registered investment advisor whose investment strategy is based on a portfolio of individual equities that provide attractive
current yields, potential dividend growth, and the opportunity for capital appreciation. They execute a top-down approach, beginning with a solid understanding of current economic and market
cycles, and use their macroeconomic outlook in determining their asset allocation models, sector weightings, and seek to identify attractive areas of the market.
The Brookmont Equity Dividend Portfolio is a unit investment trust which invests in common stocks with above-average dividend yields and the potential for long-term capital gains. Not limited to a
certain "style", Brookmont selects stocks they believe offer attractive valuations with below-market risk profiles.
The Importance of Dividends
Dividends have historically been one of the few constants in the world of investing, and they have had a
significant impact on stock performance, contributing nearly half of the stock market’s total return.
According to Ibbotson Associates, dividends have provided approximately 41% of the 10.16% average
annual total return on the S&P 500 Index from 1926 through 2017. Of course, past performance is no
guarantee of future results.
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.
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.
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.
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.
As the use of Internet technology has
become more prevalent in the course of
business, the trust has become more
susceptible to potential operational risks
through breaches in cyber security.
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.