FLPADX S&P Dividend Aristocrats Buy-Write Portfolio


The Trust seeks income, with capital appreciation as a secondary objective. There can be no guarantee that the objectives of the Trust will be achieved.

Strategy Description

Under normal circumstances, the Trust will invest at least 80% of its assets in dividend-paying securities.

The Trust invests in a fixed portfolio of common stocks which are selected from the S&P 500® Dividend Aristocrats® Index. The index consists of companies from the S&P 500® Index that have increased dividends every year for at least 25 consecutive years.

Simultaneously, the portfolio sells a LEAPS® call option against each position. The writing (selling) of a call option generates income in the form of a premium paid by the option buyer. The portfolio invests this income in U.S. Treasury notes and the interest received from the notes is paid to Unit holders periodically.

Each Common Stock is subject to a contractual right, in the form of LEAPS®, which gives the holder of the LEAPS® (the “Right Holder”) the right to buy the Common Stock at a predetermined price (the “Strike Price”) on any business day prior to the expiration of the LEAPS®. Each LEAPS® will be issued by The Options Clearing Corporation (“OCC”) in the form of an American style option, which means that it is exercisable at the Strike Price on any business day prior to its expiration date.

Summary Data

Label Value
Status Secondary
Sponsor First Trust Portfolios
Series Series 14
Asset Class Domestic Equity
Investment Strategy/Goal BuyWrite
Investment Type/Style Equity - Covered Call

Performance Disclosure

Cumulative returns of each unit investment trust series are based on distributions received in cash and recognized on the ex-dividend date and paid out on the payable date during the life of the unit investment trust. Returns are calculated excluding the Transactional Sales Charge for each unit investment trust series but does reflect the Creation & Development Fee and trust operating expenses as incurred for each unit investment trust series. The returns do not adjust for taxes. If adjusted or taxes, the effects of taxation would reduce the performance depicted.

Past performance is no indicator of future results. Investment return and principal value will fluctuate with changes in market conditions. An investment in units of a unit investment trust when redeemed may be worth more or less than the original investment.

Unit Investment Trust ("UIT") Investment Risks

There is no assurance that a unit investment trust will achieve its investment objective.

Unit investment trusts are unmanaged. You can lose money investing in unit investment trusts. When sold, units may be worth more or less than the original amount invested. Depending upon the specific product offering, investment risks include, but are not limited to, interest rate risk, credit risk, call risk and liquidity risk.

Product(s) discussed herein are not FDIC insured, may lose value, and are not bank guaranteed. You should not purchase an investment product or make an investment recommendation until you have read the specific offering documentation and understand the specific investment terms, features, risks, fees, charges and expenses of such investment.