In addition, the portfolio's performance will vary from that of investing in The Dow SM DART 5 strategy stocks because it may not be invested equally in these stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the DJIA SM in certain years and may produce negative results. There may be tax consequences unless units are purchased in an IRA or other qualified plan. The Dow SM DART 5 Portfolio is a five stock portfolio and is subject to added risk due to its relative lack of diversification. The strategy returns take into consideration annual sales charges, fees and expenses, but not taxes.
Past performance is no guarantee of future results.
By selecting the DJIA SM stocks with the highest dividend yields, the strategy seeks to uncover the stocks that may be out of favor or undervalued. More recently, many companies have turned to stock repurchase programs as a tax efficient way to bolster their stock prices and reward shareholders. The strategy ranks the DJIA SM companies with the greatest reduction in the number of outstanding shares combined with the highest dividend yield and selects the top ten. After identifying ten potentially undervalued companies, the strategy selects the five companies with the greatest change in return on assets over the last 12 months. These five companies have exhibited the ability to increase profitability while having the growth potential of a possibly undervalued company.