Select DSIP Portfolio, 3rd Quarter 2024 Series

The Select DSIP Portfolio is based on the Diversified Stock Income Plan (DSIP). This plan was created to capitalize on a rising dividend strategy and is comprised of 70 stocks that are regularly reviewed and compiled after a thorough analysis by Well Fargo Advisors.

Portfolio Selection Process

• Begin with the 70 stocks that comprise the DSIP list. The objective of this list is to provide a diversified universe of industry-leading companies whose consistent dividend growth can potentially help offset the wealth eroding effects of inflation.


• Choose a portfolio that focuses on companies that:


• Have a solid financial condition


• Have attractive current dividend yields


• Are believed to have the potential to continue to raise dividends yearly


• Purchase an approximately equally weighted portfolio of 25 stocks with the best overall ranking.

The Importance Of Dividends

Investing in dividend-paying stocks is a time-tested strategy that provides an attractive combination of income and capital appreciation potential. Since 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. Dividend distributions can offer more than just an income boost, they can potentially help to offset losses in down markets. Additionally, reinvesting dividends has the potential to be a powerful strategy in an investor’s portfolio.

Why Invest In Companies With A History Of Growing Dividends?

Quality | Companies that have been able to consistently grow their dividend have a tendency to be higher quality compared to those of the broader market in terms of earnings quality and leverage, in our opinion. A company’s ability to reliably increase its dividend for years, or even decades, can be an indication of its financial strength or discipline.

Buffer Against Market Volatility | Dividend growth companies may be attractive to investors looking for disciplined companies that can endure difficult market and economic environments. These companies typically feature healthy balance sheets and consistent cash flows that provide plenty of capital to effectively operate their business and fund a growing dividend.

Portfolio Objectives

This unit investment trust seeks to provide an attractive stream of income and to reduce volatility and modify risk through diversification and rising dividends. There is no assurance the objectives will be met.

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.

Certain of the securities in the trust are issued by Real Estate Investment Trusts (REITs). Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

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 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 portfolio may be subject to 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.

Wells Fargo Advisors is the trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company. While Wells Fargo Advisors has carefully evaluated and approved the securities in this portfolio, it may choose for any reason not to recommend any or all of the securities for another purpose or at a later date. This may affect the value of your units. The Trust is not sponsored or created by Wells Fargo & Co. or any of its affiliates or subsidiaries.