Global Dividend Portfolio, Series 54
Why Invest Globally?
Historically, American investors have found substantial investment opportunities right here in the
U. S. However, world markets are expanding, companies are growing, and trade is increasing,
creating new opportunities for investors. By investing a portion of your portfolio outside the U. S.,
you may significantly expand your investment choices and participate in the long-term growth
potential of foreign companies. The Global Dividend Portfolio provides a convenient and efficient
way to add an international dimension to your investment portfolio.
The Importance of Dividends
Corporations are not obligated to share their earnings with stockholders, so dividends may be
viewed as a sign of a company's profitability as well as management's assessment of the future.
Dividends have also had a significant impact on stock performance. You should be aware that there
is no guarantee that the issuers of the securities included in the portfolio will declare dividends in
the future or that, if declared, they will either remain at current levels or increase over time.
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
The first step in our selection process is to identify
the universe of stocks from which we will select the
portfolio. From that universe, we select only those
companies that have market capitalizations greater
than $5 billion.
Screen the Universe
The next step is to look for those companies with
a history of increasing dividend payments and
above-average dividend yields. These screens are
designed to identify companies with stable cash
flows and dividend income potential.
Select Companies with Attractive Valuations for the Portfolio
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 aboveaverage 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.
An investment in foreign securities should be made with an understanding of the additional risks
involved, such as currency fluctuations, political risk, the lack of adequate financial information,
withholding taxes and exchange control restrictions impacting foreign issuers.
Because the portfolio is concentrated in companies headquartered in Europe, the portfolio may
present more risks than a portfolio which is broadly diversified over several regions.
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.