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Target Dividend Blend Portfolio, 3rd Quarter 2024 Series

The Target Dividend Blend Portfolio is a unit investment trust which seeks to provide broad equity diversification and dividend income by investing in common stocks across various market capitalizations, growth and value styles, sectors and countries. The trust invests in a fixed portfolio of stocks which are selected by applying pre-determined screens and factors and holds the stocks for approximately 15 months. The trust seeks above-average total return; however, there is no assurance the objective will be met. The trust is comprised of the two strategies described below.

Target High Quality Dividend Strategy – 50%

  • Begin with the 1,000 stocks with the largest market capitalization as of two business days prior to the initial date of deposit which trade on a U.S. exchange, excluding REITs, ADRs, regulated investment companies and limited partnerships.

  • Select only those stocks that meet the following criteria:

    • Minimum three month average daily trading volume of $2.5 million.

    • Three consecutive years of dividend increases.

  • Screen for quality on the following factors:

    • Net debt/assets of less than 50%.

    • Three-year payout ratio of less than 50% of earnings.

    • Positive free cash flow after dividends for the trailing 12 months.

  • Purchase an approximately equally weighted portfolio of the 30 stocks with the highest dividend yield, subject to a maximum of nine stocks from any one of the major GICS® market sectors. The financials and real estate sectors are combined for the sector limit purpose.

Target Global Dividend Leaders Strategy – 50%

  • Establish three distinct universes as of two business days prior to the initial date of deposit which consist of the following: domestic equity, international equity, and U.S. REITs (including mortgage REITs).

  • Regulated investment companies and limited partnerships are excluded from all universes. REITs (including mortgage REITs) are also excluded from the domestic and international equity universes.

  • Select the stocks in each universe that meet the following criteria:

    • Market capitalization greater than $1 billion.

    • Three month average daily trading volume greater than $1 million.

    • Current indicated dividend yield greater than twice that of the S&P 500 Index at the time of selection.

  • Rank the selected stocks within each universe on three equally weighted factors:

    • Price to cash flow.

    • Return on assets.

    • 3, 6, and 12-month price appreciation.

  • Select the 20 stocks within each universe with the best overall combined rankings. The domestic and international equity universes are subject to a maximum of four stocks from any one of the major GICS® market sectors. The financials and real estate sectors are combined for the sector limit purpose. If a universe has less than 20 eligible securities, all eligible securities are selected.

  • The universes are approximately weighted as shown below. Stocks are approximately equally weighted within their universe.

    • 40% domestic equity.

    • 40% international equity.

    • 20% REITs.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Mountain Chart

Standard Deviations* Average Annual Total Returns*
Russell 3000 Index Strategy Russell 3000 Index Strategy
Since 1998 16.05% 17.21% 8.32% 9.08%
25 years 15.77% 17.17% 7.74% 9.30%
20 years 15.39% 17.66% 9.65% 9.15%
15 years 15.84% 18.86% 13.82% 11.23%
10 years 15.63% 19.30% 11.46% 6.01%
5 years 19.12% 24.54% 15.14% 9.95%
3 years 17.70% 20.56% 8.52% 11.70%
*Through 12/29/23

Annual Total Returns
Year Russell
3000 Index


1998 24.11% 3.70%
1999 20.96% 1.98%
2000 -7.30% 11.05%
2001 -11.43% 14.48%
2002 -21.53% -8.21%
2003 31.02% 34.71%
2004 11.93% 19.77%
2005 6.10% 6.61%
2006 15.67% 23.18%
2007 5.16% 8.70%
2008 -37.32% -31.69%
2009 28.29% 48.03%
2010 16.93% 16.93%
2011 1.00% 4.70%
2012 16.41% 11.86%
2013 33.55% 35.78%
2014 12.53% 6.76%
2015 0.48% -11.06%
2016 12.70% 14.15%
2017 21.10% 16.22%
2018 -5.24% -11.41%
2019 30.99% 21.07%
2020 20.88% -4.78%
2021 25.63% 26.65%
2022 -19.21% -5,69%
2023 25.91% 16.68%
6/28/24 13.55% 1.83%

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 Russell 3000 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 all dividends received during a year 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 Russell 3000 Index in certain years and may produce negative results.

The Russell 3000 Index is an unmanaged index used to measure the performance of the largest 3000 U.S. stocks based on total market capitalization. The index cannot be purchased directly by investors.

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.

Risk Considerations

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.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non- U.S. issuers.

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.

Large capitalization companies may grow at a slower rate than the overall market.

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 cybersecurity.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.

The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease.

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.

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.


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
30335W565 (Cash)
30335W573 (Reinvest)
30335W581 (Cash-Fee)
30335W599 (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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