The Diversified Dividend & Income Portfolio, Series 28 ("Trust") seeks to provide dividend income potential coupled with the potential for longterm capital appreciation.
|Wrap Fee Price||N/A|
|Remaining Deferred Sales Charge||$0.2250|
|Mandatory Maturity Date||3/23/2020|
|NASDAQ Ticker Symbol||CDDICX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.7750|
|Deferred Sales Charge Dates||
|Number of Holdings||37|
|Historical Annual Dividend Distribution||$0.2429|
All data is subject to change daily. Data may differ from the prospectus due to different data sources or market changes. Please refer to prospectus for additional information about the trust including the portfolio section criteria. Source: FactSet Research Systems Inc. unless otherwise noted. The total percentages may not be equal to 100% due to rounding. N/A indicates that certain securities have not been identified and/or classified by the data provider. A unit is a combination of securities or types of securities traded together.
|Weighted Average Price/Earnings (P/E) Ratio||36.53|
|Weighted Average Price/Book (P/B) Ratio||24.34|
|Weighted Average Market Cap (MM)||$119,633.71|
|US Common Stock||95.05%|
|Health Care Providers & Services||3.14%|
|Oil Gas & Consumable Fuels||12.30%|
|Diversified Telecommunication Services||5.03%|
|Aerospace & Defense||5.05%|
|Semiconductors & Semiconductor Equipment||4.73%|
|Equity Real Estate Investment Trusts (REITs)||4.95%|
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
Principal Investment Strategy
The Trust consists of a diversified portfolio of dividend-paying equity securities. The Sponsor believes that dividends are often a good indicator of a corporation’s current financial condition and, furthermore, may signal management’s belief in a profitable future for the corporation. Investors seeking to return to the often volatile equity markets may consider the income available from a group of dividend-paying securities as a logical first step toward reentry into such markets. However, there can be no assurance that any security held by the Trust will meet the Trust’s objective. As a result of this strategy, the Trust invests significantly in the consumer products sector.
The Sponsor selects domestically-traded companies that it believes are core holdings of a diversified dividend-paying portfolio. To select the portfolio the Sponsor follows a disciplined process which includes both quantitative screening and qualitative analysis. The Sponsor begins with the companies currently in the Russell 3000® Index and identifies a universe of securities with higher indicated dividend yields than their average counterpart within the same Global Industry Classification Standards (“GICS”) sector. From this universe of approximately 400 companies, the Sponsor identifies companies for inclusion in the portfolio through a qualitative analysis, which may be primarily based on, but not limited to, the following factors:
• Cash-flow Adequacy. The Sponsor favors companies with recent earnings, operating cash-flow, and free cash-flow significantly higher than the dividends paid.
• Balance Sheet. The Sponsor favors companies that possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
• Valuation. The Sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book and price-to-cash flow.
• Industry Leadership. The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.
• Growth. The Sponsor favors companies with a history of (and prospects for) above average growth of dividends, sales and earnings.
For the final step the Sponsor weights the selected securities such that the portfolio has no more than approximately 20% of its net assets (as of the date of deposit) in any one given GICS sector. Please note that due to the fluctuating nature of security prices, the weighting of a sector in the Trust portfolio may change after the date of deposit.
The Sponsor believes that one factor that may provide increased returns for shareholders over long periods of time is dividend reinvestment. Reinvesting dividends has historically had a significant compounding effect on investor returns. However, there is no guarantee that dividend reinvestment will have such a compounding effect on investor returns in the future.
Definition: The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Risks and Other Considerations
As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these:
• Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
• The Trust invests significantly in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that share prices of the securities in the Trust will not decline and that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
• The Trust invests in securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• Inflation may lead to a decrease in the value of assets or income from investments.
• The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.
Investing involves risk, including the possible loss of principal.
Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investments Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisors to the referenced funds.
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