Dividend Strength Opportunity Portfolio, Series 9
When it comes to investing for income and growth, investors have several choices. We believe 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.
Due to the fact that corporations are not obligated to share their earnings with stockholders, dividends
may be viewed as a sign of a company's profitability as well as management's assessment of the future,
in our opinion. Additionally, 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 42% of the 9.99% average annual total return on the S&P 500
Index, from 1926 through 2018. 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.
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
begin with the companies listed in the S&P
1500 Index and eliminate those companies that
do not meet our investment criteria. These
criteria are designed to identify companies with
the following qualities:
- Well-capitalized with strong balance sheets.
- Record of financial strength and profit
- A history of dividend payments with the ability to generate dividend growth.
Examine Historical Financial Results
The next step in our process is to
look for those companies that have earned a net
cash flow return on investment that is above the
average of their peers. Historically, companies that
have increased their cash flows at a higher rate have
rewarded shareholders with superior total returns.
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.
You should be aware that the portfolio is concentrated in stocks in
the consumer products sector which involves additional risks,
including limited diversification. The companies engaged in the
consumer products industry are subject to global competition,
changing government regulations and trade policies, currency
fluctuations, and the financial and political risks inherent in
producing products for foreign markets.
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.
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.
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
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.