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BNY Mellon Strategic Municipals, Inc. (LEO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$6.86 - $9.88$8.34
Multi-Stage$11.27 - $12.37$11.81
Blended Fair Value$10.07
Current Price$6.25
Upside61.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-10.48%-7.52%0.240.230.290.330.410.420.420.440.490.50
YoY Growth--5.26%-20.28%-14.11%-18.80%-1.76%-0.47%-4.65%-10.92%-0.26%-5.58%
Dividend Yield--3.84%3.50%5.37%5.48%4.71%5.04%4.89%5.90%5.62%5.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)60.42
(-) Cash Dividends Paid (M)22.49
(=) Cash Retained (M)37.93
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.087.554.53
Cash Retained (M)37.9337.9337.93
(-) Cash Required (M)-12.08-7.55-4.53
(=) Excess Retained (M)25.8530.3833.40
(/) Shares Outstanding (M)62.2962.2962.29
(=) Excess Retained per Share0.410.490.54
LTM Dividend per Share0.360.360.36
(+) Excess Retained per Share0.410.490.54
(=) Adjusted Dividend0.780.850.90
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$6.86$8.34$9.88
Upside / Downside9.80%33.36%58.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)60.4259.8159.2158.6258.0357.4559.18
Payout Ratio37.22%47.78%58.33%68.89%79.44%90.00%92.50%
Projected Dividends (M)22.4928.5834.5440.3846.1151.7154.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)25.9326.2026.46
Year 2 PV (M)28.4529.0329.62
Year 3 PV (M)30.1831.1132.07
Year 4 PV (M)31.2732.5733.90
Year 5 PV (M)31.8333.4835.21
PV of Terminal Value (M)554.15583.01613.05
Equity Value (M)701.81735.40770.31
Shares Outstanding (M)62.2962.2962.29
Fair Value$11.27$11.81$12.37
Upside / Downside80.27%88.89%97.86%

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