Strategic Dividend Select Portfolio, Series 44

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 40% of the 10.30% average annual total return on the S&P 500 Index, from 1926 through 2020.1

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.

1The 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 Objective

This unit investment trust seeks above-average total return; however, there is no assurance the objective will be met.

Portfolio Composition

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 allocation below.



  • Dividend Strength - The stocks for this component of the portfolio are selected from the Russell 3000 Index. Through our selection process, 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 well-capitalized 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.


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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Risk Considerations
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.

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.

Certain of the closed-end funds invest in preferred stocks. Preferred stocks are equity securities of the issuing company which pay income in the form of dividends. Preferred stocks are typically subordinated to bonds and other debt instruments in a company’s capital structure, and therefore will be subject to greater credit risk than those debt instruments.

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.

About one year after the United Kingdom officially departed the European Union (commonly referred to as “Brexit”), the United Kingdom and the European Union reached a trade agreement that became effective on December 31, 2020. It is not currently possible to determine the extent of the impact the Brexit trade agreement may have on the portfolio’s investments and this certainly could negatively impact current and future economic conditions in the United Kingdom and other countries, which could negatively impact the value of the portfolio’s investments.

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.

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.

The COVID-19 global pandemic has resulted in major disruptions to economies and markets around the world. Financial markets have experienced extreme volatility and severe losses, negatively impacting global economic growth prospects. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty and may exacerbate other political, social and economic risks.

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.

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 organizational costs.

For a discussion of additional risks of investing in the Trust see the “Risk Factors” section of the prospectus.