Technology Dividend, Series 52
Historically, technology companies were recognized for their growth potential and paid little in dividends. During the Internet build-out phase of the 1990s, many companies in the sector were
new businesses, committing capital to research and development and merger and acquisition
efforts. Since then, technology has evolved to become an indispensable part of our lives.
Internet usage continues to grow at a rapid pace. Demand is rising for products such as wireless
connectivity, semiconductors, and cloud computing.
Today, many technology companies have matured into companies with strong balance sheets and
financial flexibility and are paying dividends, while continuing to reinvest in their businesses. We believe
future growth potential combined with dividend payouts make technology an attractive sector.
Information Technology Dividend Contribution
(2004-2023)
In 2023, technology companies accounted for 16.40% of the dividends paid by the S&P 500 Index,
having grown significantly from contributing only 5.09% in 2004.
Portfolio Objective
This unit investment trust seeks above-average total return by investing in dividend-paying
companies in the technology sector; 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 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.
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.
Risk Considerations
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.
You should be aware that the portfolio is concentrated in
stocks in the information technology sector which involves
additional risks, including limited diversification. The
companies engaged in the information technology sector are
subject to fierce competition, high research and development
costs, and their products and services may be subject to rapid
obsolescence. Technology company stocks, especially those
which are Internet-related, may experience extreme price and
volume fluctuations that are often unrelated to their
operating performance.
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.
Risks associated with investing in non-U.S. securities may be more pronounced in emerging and developing markets where the securities markets are substantially smaller, less developed, less liquid, less regulated, and more
volatile than the U.S. and developed non-U.S. markets.
An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices of 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.
Large capitalization companies may grow at a slower rate than the overall market.
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.
Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East 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.
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.