Dynamic Dividend Frequently Asked Questions:

Q. How does a dividend-paying company become a dividend achiever?

A. A publicly traded company that has increased its dividends for the last ten or more consecutive years will be classified as a Dividend Achiever. Depending on the industry, companies must also meet certain capitalization requirements in order to be considered a Dividend Achiever.

Q. Is there an index that tracks the performance of the Dividend Achievers?

A. Mergent's currently offers an index that tracks the daily performance appreciation values are published by the American Stock Exchange under the symbol ^ DDAA. The index is reconstituted annually.

Q. How many stocks will be included within a portfolio?

A. The goal of the strategy is to own the 10-20 best ideas from the Mergent's Dividend Achievers universe of stocks. The actual number however may vary due to general market conditions, the number of sectors deemed attractive, and the relative attractiveness of stocks found within those sectors.

Q. Can the portfolio hold cash for extended periods of time?

A. If the market remains in a defensive period for an extended period of time where the primary consideration is preservation of capital, the portfolio may hold cash or cash equivalents in order to protect capital from loss. The feature sets this strategy apart from the many mutual funds and other institutions that offer dividend strategy programs but tend to remain fully invested at all times.

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