Enhanced Dividend Income Portfolio (EDIP) Planning,LLC

Enhanced Dividend Income Portfolio (EDIP)

Factsheet | 2016 Q4

Capital Wealth Planning, LLC

Dividend Income has contributed 60% of total equity returns since 1980*

Portfolio Process

CWP's Enhanced Dividend Income Portfolio (EDIP) is strategically designed to offer a higher total return on a risk-adjusted basis for relatively conservative growth and income oriented investors. This is achieved by constructing a portfolio that is diversified among all 10 S&P sectors and selling call options tactically to generate additional income. Analyzing the sectors allows us to determine what areas of the market are working or doing best based on breadth of the S&P 500 and strength relative to the overall market.

CWP actively manages sector allocation and opportunities to participate in defensive and cyclical trends given the relevant economic cycle. CWP screens for growth and value stocks that have a history of increasing dividends and possess strong fundamentals. The portfolio consists primarily of dividend paying stocks and is designed to deliver an estimated annual cash flow of 5-7% from dividend and option income, plus the potential for capital appreciation.

Top Ten Holdings (%)

Historical Yield

Kraft Heinz Company

6.04

Walt Disney Company

5.22 2016

3M Company

5.02

Cisco Systems Inc.

4.97 2015

IBM

4.97

Microsoft

4.96 2014

Home Depot

4.94

Dupont | De Nemours & Co. 4.93 2013

Schlumberger LTD

4.90

5.10 2.79 2.31

6.41 3.80 2.61

5.73 2.95 2.78

4.70 2.95 1.75

United Technologies Corp. 4.35 Total Yield Dividend Yield Option Income

Strategy Characteristics

Unlike a systematic covered call program, CWP is not obligated to continuously cover each individual equity position. When one of the underlying stocks demonstrates strength or an increase in implied volatility, CWP managers identify that opportunity and sell call options tactically, rather than keeping all positions covered and limiting potential upside.

Structure: Inception Date: As of:

Portfolio Stats

Managed Accounts January 1, 2013

December 30, 2016

EDIP DJIA

Strategy Highlights

? Blue Chip Dividend Paying Stocks ? Income of 5-7% through Dividend and Call Premium ? Low volatility while owning equities ? Separately Managed Account (WRAP) ? Low Fees

Number of Holdings Dividend Yield Forecasted PE Ratio-1 Year Price/Book Long-term EPS Growth Weighted Average Market Cap (Billions)

24 2.38 17.73 4.45 5.64 142.6

30 2.51 17.20 4.48 4.48 179.1

Annualized Payout Analysis*

Sample Account Value

Average Position Size Cash

$1,000,000.00

$36,800.00 $80,000.00

Risk Measures

Std Dev. (3yr. Annualized) Alpha Beta Sharpe Ratio

EDIP DJIA

8.89 10.93 3.21 0.00 0.73 1.00 1.35 1.23

Portfolio Dividend Cash Flow Estimated Option Cash Flow

Estimated Annualized Cash Flow

$24,875.78 $29,150.00

$54,025.78

R?

Gross Performance (%)

Gross Annualized Return (Incept)

0.81 1.00

EDIP DJIA

12.36 13.60

Portfolio Annualized Dividend Yield Estimated Annualized Option Premium

Estimated Annualized Yield

2.49% 2.92%

5.40%

1-Year Return 3-Year Annualized Return Upside Capture

7.00 8.08 77.82

16.50 8.71 100

Downside Capture

68.14

100

Disclaimer: Information presented is based on the current dividend yield and stock price at the specified date. The estimated annual option premium is a forward looking estimate and assumes that the option are unexercised and another round of options are sold at the same price. This portfolio is hypothetical representation and actual results may vary. Disclaimer: Diversi- fication seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns. All investments involve the risk of potential investment losses and no strategy can assure a profit. Enhanced Dividend Wrap Composite includes all portfolios that invest in large cap dividend paying equities with covered call sales to generate additional income and for comparison purposes is measured against the Dow Jones Industrial Average (Dow 30). The Dow Jones Industrial Average Index is a hypothetical index that tracks both capital gains of a group of stocks over time, and assumes that any cash distributions, such as dividends, are reinvested back into the index. The minimum account size for this composite is $250,000. Anything below that at the end of each reporting period (monthly) is not included in the composite. The Enhanced Dividend Wrap Composite was created January 1st 2013. A complete list of the firm's composite is available

upon request. Also, the policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

Enhanced Dividend Income Portfolio (EDIP)

Factsheet | 2016 Q4

Capital Wealth Planning, LLC

Monthly Composite Returns (Net of Fees)

Year-to-Date

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov Dec EDIP DJIA

2016 -3.54 -1.46 6.18 -1.46

1.2

2.59

1.91

1.43

-0.63 -1.39 2.32

2.02

6.09 16.51

2015 -1.93 4.14

0.48 -0.62 1.44

-0.95 2.09 -5.35 -0.35 6.62

0.46

-0.68 4.97

0.21

2014 -4.08 2.36

2.97

2.22

0.67

1.12

-0.74 2.62 -0.64 0.51

2.17

-0.14 9.20 10.04

2013 4.96

2.1

3.61 0.94

0.67 -0.89 4.32 -3.81

2.3

4.76

1.33

2.09 24.38 29.65

Disclosures

Capital Wealth Planning, LLC claims compliance with the Global Investment Performance Standards (GIPS?) and has prepared and presented this report in compliance with the GIPS standards. Capital Wealth Planning, LLC has been independently verified for the periods Jan 2010 thru Sept 2015. The verification report(s) is/are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.*Composite and benchmark performance are for the period 1/1/2013 through 9/30/2016. N.A.1 - Information is not shown because less than six porfolios were in the composite for the full annual period. N.A.2 - Information is not show because there is less than 36 months of returns available. Enhanced Dividend Wrap Composite includes all portfolios that invest in large cap dividend paying equities with covered call sales to generate additional income and for comparison purposes is measured against the Dow Jones Industrial Average (Dow 30). The Dow Jones Industrial Average Index is a hypothetical index that tracks both capital gains of a group of stocks over time, and assumes that any cash distributions, such as dividends, are reinvested back into the index. The minimum account size for this composite is $250,000. Anything below that at the end of each reporting period (monthly) is not included in the composite. The Enhanced Dividend Wrap Composite was created January 1st 2013. A complete list of the firm's composite is available upon request. Also, the policies for for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance. Returns are presented net of the entire actual wrap fees and include the reinvestment of all income. Wrap fee accounts pay a fee based on a percentage of assets under management. Other than brokerage commissions this fee includes investment management, portfolio monitoring, and in some cases, custodial services. Wrap fee schedules are provided by independent wrap sponsors and are available upon request from the respective wrap sponsor. The annual internal composite dispersion is presented with returns net of actual wrap fees and for the accounts in the composite the entire year. Also, an equally weighted standard deviation is calculated net of actual wrap fees. Policies for valuing portfolios, calculating performance, and preparing compli-ant presentations are available upon request. The custodial wrap fee schedule for separately managed clients is typically between 100 to 175 bps depending on the account actual size. Actual investment advisory fees incurred by clients may vary. Capital Wealth Planning, LLC is an independent, fee-only registered investment advisor that was established in 2007. Capital Wealth Planning, LLC is a growth and income pofolio investment manager that invests solely in U.S. based securities. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Enhanced Dividend WRAP Composite has been examined for the periods 1/1/2013 to 9/30/2015. The verification and performance examination reports are available upon request. The Enhanced Dividend-Wrap Composite does not employ the use of leverage, but does use derivatives to enhance income. The type of derivatives used are covered calls. They are used consistently throughout the calendar year, but generally make up no more than 5% of the market value of an account.

About Capital Wealth Planning

Registered Investment Advisor

Capital Wealth Planning is an independent, fee-only Investment Advisory firm registered with the Securities and Exchange Commission. CWP provides sub-advisory investment services to high net worth individuals, pensions, profit sharing plans, trusts, estates, charitable organizations, and corporations. CWP's strategic focus is concentrated on providing proprietary investment products and services for institutional investment platforms.

CWP realizes that as markets and environments change, the ability to adapt is crucial. CWP specializes in covered call strategies, which allows our firm to focus solely on what we do best; reduce risk and increase the yield of the portfolio. Capital Wealth Planning exists at the forefront of implementing covered call strategies on our proprietary ETF Income and Enhanced Dividend Income Portfolios, as well as concentrated equity holdings.

Above all else, CWP's strategic partners and clients are our number one priority and our firm takes that very seriously. CWP's success is dependent on your satisfaction. A teammate like relationship allows our firm to establish highly personalized sub-advisory relationships coupled with customized portfolios composed of innovative investment opportunities, which generate monthly cash flow and reduce risk in the client's portfolio.

Capital Wealth Planning, LLC 1016 Collier Center Way, Suite 101 Naples. Florida

Main Sales Advisor Support

239-593-2100 239-593-2100 239-593-2100

Email: KSimpson@ Website:

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