Battle of the Yields: Stocks vs Bonds - Dogs of the Dow (PDF)

Invesco Unit Trusts

Battle of the Yields: Stocks vs. Bonds, Dogs of the Dow

Dogs of the Dow ? Dividend yields can potentially exceed corporate bond yields

With dividend yields higher than corporate bond yields for a number of the world's largest companies, many issuers have an incentive to buy back equities and issue debt at historically low interest rates. The "Dogs of the Dow" strategy has garnered much attention as of late as many large mega-cap companies have increased their 2014 dividends.

The "Dogs of the Dow" strategy offers investors an investment strategy that owns the ten highest dividend-yielding companies of the Dow Jones Industrial Average Index as of the trust's deposit date.

Dividend yields and corporate bond yields

Recent market movements have created conditions in which the stocks of a number of dividend-yielding companies may provide a higher yield than certain of the same company's bond issues. The underlying risks of owning bonds are substantially different than that of owning stocks (see "Risk considerations" on the following page), however, the yield comparison below serves to demonstrate the potential for high-dividend yielding stocks to outperform bonds as investors in the marketplace may seek exposure to greater yields. In viewing this comparison, investors should note that stock dividend yields may vary suddenly and significantly relative to bond yields since stock prices are typically more volatile than bond prices and also because the payment of dividends is never assured and may vary over time.

For investors looking to stick with the strategy, or begin an annual allocation to the strategy, the 2014-4 series of "Dogs of the Dow" consists of the following companies:

Select 10 Industrials Portfolio (SDOW144) (Deposited on 7/1/14)

Stock

Ticker

Price ($)1 (6/30/14)

SDOW144 Stock Dividend Yields (%)1

(6/30/14)

Company 5-Year Bond Yield for Comparison Bond Yield (%)2

(6/30/14)

AT&T Inc.

T

$35.36

5.20

2.08

Chevron Corporation

CVX

$130.55

3.28

1.79

Cisco Systems, Inc.

CSCO

$24.85

3.06

2.31

General Electric Company

GE

$26.28

3.35

1.84

Intel Corporation

INTC

$30.90

2.91

2.78**

McDonald's Corporation

MCD

$100.74

3.22

1.85

Merck & Co., Inc.

MRK

$57.85

3.04

1.95

Pfizer Inc.

PFE

$29.68

3.50

1.95

Procter & Gamble Company

PG

$78.59

3.28

1.77

Verizon Communications Inc.

VZ

$48.93

4.33

2.21

Average

3.73

2.23

1 Prices and yields are representative of values as of the close of the market on 6/30/14. Common stocks do not assure dividend payments and the amount of a dividend if any, may vary over time. There can be no guarantee or assurance that companies will declare dividends in the future or that if declared, they will remain at current levels or increase over time.

2 Source: Bloomberg L.P. 6/30/14. Please note that these bond yields are for yield comparison purposes only and are not a recommendation to buy or sell the bond. Please note that the selected bond yields are for 5-Year bonds issued by those individual companies and furthermore, similar longer maturity corporate bonds generally have higher yields and are more stable and secure than dividend yields.

** 7 year maturity. All other yields are 5 years unless otherwise noted.

A potential investment in bonds should be made with an understanding of the risks associated therewith, such as the inability of the issuer or an insurer to pay the principal of or interest on a bond when due, volatile interest rates, early call provisions and changes to the tax status of the bonds. As interest rates rise, bond prices fall.

Investments in bonds may be subject to interest rate risk. If interest rates rise, the value of the bond may decline and if interest rates decline the value of the bond may increase. Also, the longer the period to maturity, the greater the sensitivity to interest rate changes tends to be.

The SDOW "Dogs of the Dow" Strategy does not invest in bonds. The bond yields presented on the previous page are shown only for purposes of comparison. Described above are certain risks associated with bond ownership.

"Dow Jones Industrial Average," "The Dow" and "DJIA" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones") and have been licensed for use for certain purposes by Invesco and the trust. The trust, based on the Dow Jones Industrial Average, is not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product.

The Dow Jones Industrial AverageSM (DJIASM) is a product of Dow Jones Indexes, a CME Group company, has been licensed for use and is an unmanaged index generally representative of the U.S. stock market.

The Dow Jones Industrial Average (DJIA) is a price-weighted index of the 30 largest, most widely held stocks traded on the New York Stock Exchange. It is not possible to invest directly in an index.

About risk (SDOW144) There is no assurance the trust will achieve its investment objective. An investment in this unit investment trust is subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. This trust is unmanaged. Accordingly, you can lose money investing in this trust.

Because the portfolio holds a relatively small number of stocks, you may encounter more price volatility than would occur in an investment diversified among a greater number of stocks. Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer's board of directors and the amount of any dividend may vary over time. The trust should be considered as a part of a long-term investment strategy and you should consider your ability to pursue it by investing in successive trusts, if available. You will realize tax consequences associated with investing from one series to the next.

Explore Intentional Investing with Invesco?

FOR US USE ONLY

Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trusts, investors should ask their advisor(s) for a prospectus or download one at unittrust.

Invesco's history of offering unit investment trusts began with the acquisition of the sponsor by Invesco Ltd. in June 2010. Invesco unit investment trusts are distributed by the sponsor, Invesco Capital Markets, Inc. and broker dealers including Invesco Distributors, Inc. Both firms are wholly owned, indirect subsidiaries of Invesco Ltd.

unittrust

U-SDOWYIELD-FLY-1 07/14

Invesco Distributors, Inc.

8196

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