Strategic Dividend Select Portfolio, Series 29
Dividends have traditionally been one of the few constants in the world of investing, helping to buffer
volatility in both good and bad markets and contributing nearly half of the stock market's total returns
historically. According to Ibbotson Associates, dividends have provided approximately 42% of the
10.04% average annual total return on the S&P 500 Index, from 1926 through 2016.1
A dividend is a payment from a company's earnings. 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.
1 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
This unit investment trust seeks above-average total return; however, there is no assurance the objective will be met.
This unit investment trust invests in dividend-paying common stocks from three distinct and, we believe, complementary segments of the market as well as closed-end funds (CEFs) which invest in dividend-paying stocks. The portfolio is weighted based on the adjacent allocation.
- Dividend Strength - The stocks for this component of the portfolio are selected from the Russell 3000 Index. Through our selection proces, we seek to identify companies we consider well-capitalized with strong balance sheets, with a record of financial strength and profit growth, a history of dividend payments, and the ability to generate dividend growth.
- High Dividend - The stocks for this component of the portfolio are also selected from the Russell 3000 Index. With this component, we seek to identify companies we consider wellcapitalized with above-average dividend yields and the ability to sustain current dividend levels.
- International High Dividend - These stocks are selected from a universe of foreign companies that trade on a U.S. stock exchange either directly or through an American Depositary Receipt. Our selection process seeks to identify companies we consider well-capitalized with above-average dividend yields and the ability to sustain current dividend levels.
- Dividend & Income CEFs - This component is comprised of a pool of closed-end funds which invest in dividend-paying common stocks. A portion of these closed-end funds, on an ongoing basis, will sell covered call options. An option is considered "covered" when a closed-end fund owns the equity securities against which the options are sold. Though call options can be used for many investment purposes, they are typically used as a tool to potentially enhance returns, offer a current yield to investors, and provide limited downside protection.
FDIC Insured, Not Bank Guaranteed and May Lose Value.
An investment in this unmanaged unit investment trust should be made with an
understanding of the risks associated with an investment in a portfolio of common
stocks and closed-end funds which invest in common stocks and options.
Closed-end funds are subject to various risks, including management's ability
to meet the fund's investment objective, and to manage the fund's portfolio
when the underlying securities are redeemed or sold, during periods of market
turmoil and as investors' perceptions regarding the funds or their underlying
investments change. Unlike open-end funds, which trade at prices based on a
current determination of the fund's net asset value, closed-end funds frequently
trade at a discount to their net asset value in the secondary market. Certain
closed-end funds may employ the use of leverage, which increases the volatility
of such funds.
Certain of the funds in the portfolio invest in call options. Options are subject to various risks including that their value may be adversely affected if the
market for the option becomes less liquid or smaller. In addition, options will be affected by changes in the value and dividend rates of the stock subject
to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock and the remaining
time to expiration.
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.
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. Risks
associated with investing in foreign securities may be more pronounced in emerging markets
where the securities markets are substantially smaller, less developed, less liquid, less regulated,
and more volatile than the U.S. and developed foreign markets.
Common stocks are subject to risks 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.
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.
For a discussion of additional risks of investing in the Trust see the "Risk
Factors" section of the prospectus.
It is important to note that an investment can be made in the underlying
funds directly rather than through the trust. These direct investments can
be made without paying the trust's sales charge, operating expenses and