Deep Value Dividend Portfolio, Series 37
The Deep Value Dividend Portfolio invests in 30 companies that have low estimated
current year price-to-earnings (P/E) ratios in addition to above-average dividend
yields. We believe these companies may offer long-term investors an opportunity
for capital appreciation and dividend income.
The Importance of P/E Ratios
The P/E ratio is considered the most common measure of a stock’s value. Stocks that have high P/E
ratios tend to be considered a higher risk investment than those with low P/E ratios, since a high
P/E ratio often signifies high earnings growth expectations.
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 39% of the
10.46% average annual total return on the S&P 500 Index from 1926 through 2021. 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.
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.
Screen the Universe | We then evaluate the companies in the universe based on market
capitalization, the ratio of each stock’s current price to its estimated current year earnings, its
dividend payout and dividend yield ratios. These screens are designed to identify stocks with a
low P/E ratio and the ability to sustain its dividend yield.
Select the Portfolio | The final step is to select the 30 stocks for the portfolio subject to a
maximum of approximately 30% in a single sector. The stocks are approximately equally
weighted within the portfolio.
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 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.
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
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
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 has caused and may continue to cause significant volatility and declines 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 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.