SMid High Dividend Portfolio, Series 52
Our objective with the SMid High Dividend Portfolio is to find small and mid-size companies with above-average
dividend yields. Because smaller companies are often less reliant on the capital markets for credit,
they can be more nimble and better able to adjust in periods of economic change than larger companies.
Investing in dividend-paying stocks is a time-tested strategy for investors seeking income. History shows
that, over the long-term, dividends provide a key component of total return. As interest rates remain at
low levels, investors are turning their attention to dividend-paying stocks.
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 an initial universe of stocks that
trade on a U.S. stock exchange and
eliminate those companies that do
not meet our investment criteria.
These criteria are designed to identify
small and mid-size companies with
above-average dividend yields.
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
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 objective, 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.
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.
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.
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 cybersecurity.
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 ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future 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.