S&P International Dividend Aristocrats Portfolio, 4th Quarter 2018 Series
The S&P International Dividend Aristocrats Portfolio invests in companies from the S&P Global Dividend
Aristocrats Index. The index consists of 100 companies from the S&P Global Broad Market Index that have
increased dividends or maintained stable dividends every year for at least 10 consecutive years, as
determined by the index provider.
Why Invest In Companies With A History Of Growing Dividends?
Quality | Companies that have been able to consistently grow their dividend have a tendency to be
higher quality compared to those of the broader market in terms of earnings quality and leverage, in our
opinion. A company’s ability to reliably increase its dividend for years, or even decades, can be an
indication of its financial strength or discipline.
Buffer Against Market Volatility | Dividend growth companies may be attractive to investors
looking for disciplined companies that can endure difficult market and economic environments. These
companies typically feature healthy balance sheets and consistent cash flows that provide plenty of
capital to effectively operate their business and fund a growing dividend.
Address The Potential Risks Associated With Rising Rates | Unlike high dividend yield
strategies which tend to be concentrated in companies from certain sectors that could come under pressure
during periods of rising rates, dividend growth strategies tend to be more diversified and able to provide
increased exposure to sectors that could become more desirable with improving economic activity and
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
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.
Although this unit investment trust 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.
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
Certain securities held by the portfolio are issued by companies in
the Asia Pacific region, making the portfolio more susceptible to
the economic, market, regulatory, political, natural disasters and
local risks of the Asia Pacific region. The region has historically
been highly dependent on global trade which creates a risk with
this dependency on global growth. The stock markets tend to
have a larger prevalence of smaller companies that are inherently
more volatile and less liquid than larger companies.
Certain securities held by the portfolio are issued by companies
in Europe. The United Kingdom vote to leave the European Union
and other recent rapid political and social change throughout
Europe make the extent and nature of future economic
development in Europe and the effect on securities issued by
European issuers difficult to predict.
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 cyber security.
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.