International equities – performance and income
Invesco believes that sustainable dividend income and capital appreciation potential are both important to total return expectations. While certain domestic companies have been able to consistently grow their dividend distributions, many international companies have shown the ability to grow dividends over multiple periods. Of course, there is no guarantee of future results and the payment of stock dividends is not assured and may vary over time.
For investors interested in international equities, Invesco Unit Trust's International Dividend Sustainability Portfolio (IDST) is a fundamentally selected portfolio of international stocks with a history of increasing dividends and with the potential to increase future dividends as well.
Strength of international dividend-paying stocks
International dividend-paying stocks can add additional dimension to your portfolio in any environment. A company that can pay dividends when the market is in flux may demonstrate strength and may add an element of stability to your portfolio.
Average annual total returns of MSCI EAFE stocks by dividend policy (period ended Mar. 31, 2016)
Dividend growth has historically tied to strong performance.
Source: 2016 Ned Davis Research, Inc. Past performance does not guarantee future results. Indexes are unmanaged and one cannot invest directly in an index. All stocks were categorized by the following methodology for total return of each 12-month period since May 31, 1994 period ended Mar. 31, 2016. Dividend Cutters and Eliminators represents stocks in the MSCI EAFE that have lowered or eliminated their dividend; Non-Dividend-Paying Stocks represents non-dividend-paying stocks of the MSCI EAFE; Dividend Payers With No Change represents all dividend-paying stocks of the MSCI EAFE that have maintained their existing dividend rate; All Dividend-Paying Stocks represents all dividend-paying stocks in the MSCI EAFE; and Dividend Growers and Initiators represents all dividend-paying stocks of the MSCI EAFE that raised their existing dividend or initiated a new dividend. Performance does not represent any unit trust or strategy. The Morgan Stanley Capital International Europe, Australasia, and Far East Index ("MSCI EAFE") is an unmanaged index generally representative of major overseas stock markets. MSCI EAFE data is US dollar adjusted.
Ready to learn more? Contact your Invesco representative or financial advisor for more on how Invesco International Dividend Sustainability Portfolio may help with income as well as performance.
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 trust, investors should ask their advisor(s) for a prospectus or download one at invesco.com/uit.
There is no assurance a unit investment trust will achieve its investment objective. An investment in a unit trust is subject to market risk, which is the possibility that the market values of securities owned by a unit trust will decline and that the value of trust units may therefore be less than what you paid for them. Each trust is unmanaged and the portfolio is not intended to change during the trust's life except in limited circumstances. Accordingly, you can lose money investing in a unit trust. The trust should be considered as part of a long-term investment strategy and you should consider their 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.
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.
You could experience dilution of your investment if the size of the Portfolio is increased as Units are sold. There is no assurance that your investment will maintain its proportionate share in the Portfolio's profits and losses.
The Portfolio is concentrated in securities issued by companies domiciled in the United Kingdom. As a result, political or economic developments in the United Kingdom may have a significant impact on the securities included in the Portfolio.
This trust is concentrated in the consumer discretionary and consumer staples sectors. Companies in these sectors face risks such as intense competition, the lack of serious barriers to entry for on-line entrants, economic recession and a slowdown in consumer spending trends.
Investing in foreign securities involves certain risks not typically associated with investing solely in the United States. This may magnify volatility due to changes in foreign exchange rates, the political and economic uncertainties in foreign countries, and the potential lack of liquidity, government supervision and regulation.
Trust Objective: Invesco Unit Trusts offers a portfolio that seeks to provide above-average capital appreciation by investing in a portfolio of international stocks and American Depositary Receipts ("ADRs") of companies with a history of increasing dividend distributions.
The Morgan Stanley Capital International Europe, Australasia, and Far East Index ("MSCI EAFE") is an unmanaged index generally representative of major overseas stock markets. MSCI EAFE data is US dollar adjusted. Indexes are statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.
Invesco unit investment trusts are distributed by the sponsor, Invesco Capital Markets, Inc. and broker dealers including Invesco Distributors, Inc. Both firms are indirect, wholly owned subsidiaries of Invesco Ltd.