Dividend Growth Portfolio, Series 24
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. This 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 39% of the 10.46% average annual total return on the S&P 500 Index, from 1926 through 2021. The S&P 500 Index is an unmanaged index of 500 companies used to measure large-cap
U.S. stock market performance. The index cannot be purchased directly by investors.
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
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.
An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices of 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.
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, 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 COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have
caused and may continue to cause significant volatility and uncertainty in global financial markets. While
the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown
measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of
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.