Diversified Income & Growth Portfolio, Summer 2017 Series
Regardless of the market environment, we believe dividends should be considered an important ingredient in an investor's overall investment plan. One way to seek to accomplish this goal is to buy a
portfolio of companies with the potential to pass on a portion of their earnings to investors in the form of regular dividend increases.
The Importance Of Dividends
A company's ability to consistently pay - and increase - dividends is an important sign of that
company's financial strength. Therefore, we believe investors who are seeking dividends through their
investments should look for well-managed and financially sound companies with the potential to
deliver solid returns. Companies that choose to reward stockholders with greater dividends (and many
companies don't) can give investors the potential to increase capital and produce attractive total returns
over time. Of course, past performance is no guarantee of future results.
In the opinion of Wells Fargo Advisors ("WFA"), this strategy of investing may allow for the
accumulation of wealth over several years, while also seeking to provide capital preservation.
Dividends have had a significant impact on stock performance, and have provided approximately
42% of the 10.04% average annual total return on the S&P 500 Index, from January 1926 through
Diversified Stock Income Plan
Since the inception of the DSIP List in 1993, 95% of the companies on the list
have raised their annual dividends (as of December 31, 2011).
The Diversified Stock Income Plan (DSIP) was created to capitalize on a rising dividend strategy.
The DSIP List is compiled based on analysis conducted by WFA to select stocks with attractive
current yields, and WFA's view of the likelihood of the companies to consistently raise their annual
dividends. To create the Diversified Income & Growth Portfolio, the WFA analysts choose stocks
from the DSIP List following the process below.
PROVIDE AN ATTRACTIVE STREAM OF INCOME | A portfolio of stocks believed to
have the potential to regularly raise dividends offers investors the potential for a growing income
stream. Because companies are selected for this portfolio based on their potential to not only pay
dividends, but also their ability to increase them, this strategy can provide a natural inflation hedge.
Rising dividends have also demonstrated an ability to cushion the fall of stock prices, especially in
a rising interest rate environment.
REDUCE VOLATILIT Y AND MODIFY RISK | The Diversified Income & Growth Portfolio
helps counteract volatility through diversification. The portfolio includes companies across all
market capitalizations and from various sectors of the economy. Any stock inevitably is subject to
general price fluctuation, but diversification can help smooth out overall portfolio returns. In
addition, dividend payments may enhance the investment's total return. However, diversification
does not guarantee a profit or protect against a loss.
| Not FDIC Insured Not Bank Guaranteed May Lose Value
You should carefully consider the portfolio's investment objectives,
risks, charges and expenses before investing. Contact your Financial Consultant
or call First Trust Portfolios at 1.800.621.1675 to request a prospectus, which
contains this and other information about this portfolio. Read it carefully
before you invest. There is no assurance the objectives of this portfolio will
An investment in this unmanaged unit investment trust should be made with an understanding
of the risks involved with owning common stocks. The value of the securities held by the portfolio
may be subject to declines or increased volatility due to changes in performance or perception of
There may be tax consequences unless units are purchased in an IRA or other qualified plan. There
are fees and sales charges associated with this investment. There is no assurance the objectives of
this portfolio will be achieved.
The portfolio may contain securities of foreign issuers, which are subject to additional risks,
including currency fluctuations, political risks, withholding, the lack of adequate financial
information, and exchange control restrictions impacting foreign issuers.
While the life of this portfolio is 5 years, this strategy offers the best potential when participants
invest over many years, so investors should consider their ability to pursue investing in successive
portfolios, if available.
While Wells Fargo Advisors has carefully evaluated and approved the securities in this portfolio, it
may choose for any reason not to recommend any or all of the securities for another purpose or at a
later date. This may affect the value of your units.
Wells Fargo Advisors is the trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo
Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank
affiliates of Wells Fargo & Company.