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PGIM High Yield Bond Fund, Inc. (ISD)

Company Dividend Discount ModelIndustry: Asset Management - BondsSector: Financial Services

Valuation Snapshot

Stable Growth$26.45 - $41.62$33.40
Multi-Stage$37.53 - $40.95$39.21
Blended Fair Value$36.30
Current Price$13.83
Upside162.51%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS3.42%0.00%1.261.261.261.261.221.061.091.251.360.00
YoY Growth--0.00%0.00%0.00%2.97%14.90%-2.16%-13.13%-7.75%0.00%0.00%
Dividend Yield--9.31%10.14%9.57%7.78%9.02%7.65%7.74%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)86.72
(-) Cash Dividends Paid (M)83.81
(=) Cash Retained (M)2.92
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.3410.846.50
Cash Retained (M)2.922.922.92
(-) Cash Required (M)-17.34-10.84-6.50
(=) Excess Retained (M)-14.43-7.92-3.59
(/) Shares Outstanding (M)33.2633.2633.26
(=) Excess Retained per Share-0.43-0.24-0.11
LTM Dividend per Share2.522.522.52
(+) Excess Retained per Share-0.43-0.24-0.11
(=) Adjusted Dividend2.092.282.41
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate1.13%2.13%3.13%
Fair Value$26.45$33.40$41.62
Upside / Downside91.25%141.53%200.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)86.7288.5790.4692.3994.3696.3799.26
Payout Ratio96.64%95.31%93.98%92.65%91.33%90.00%92.50%
Projected Dividends (M)83.8184.4285.0285.6086.1786.7391.81

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate1.13%2.13%3.13%
Year 1 PV (M)76.6177.3778.13
Year 2 PV (M)70.0271.4272.82
Year 3 PV (M)63.9965.9167.86
Year 4 PV (M)58.4660.8163.22
Year 5 PV (M)53.4056.0958.89
PV of Terminal Value (M)925.65972.331,020.87
Equity Value (M)1,248.131,303.921,361.80
Shares Outstanding (M)33.2633.2633.26
Fair Value$37.53$39.21$40.95
Upside / Downside171.36%183.48%196.07%

High-Yield Dividend Screener

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