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Kayne Anderson Energy Infrastructure Fund, Inc. (KYN)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$16.01 - $23.05$19.44
Multi-Stage$26.21 - $28.77$27.47
Blended Fair Value$23.45
Current Price$12.53
Upside87.19%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.07%-3.74%0.980.670.610.490.581.091.161.161.331.54
YoY Growth--46.69%8.85%26.30%-15.63%-47.06%-6.13%0.28%-12.90%-13.98%7.52%
Dividend Yield--7.67%7.29%6.89%5.61%8.18%9.79%7.52%6.64%6.14%10.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)382.61
(-) Cash Dividends Paid (M)135.30
(=) Cash Retained (M)247.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)76.5247.8328.70
Cash Retained (M)247.31247.31247.31
(-) Cash Required (M)-76.52-47.83-28.70
(=) Excess Retained (M)170.79199.48218.61
(/) Shares Outstanding (M)169.13169.13169.13
(=) Excess Retained per Share1.011.181.29
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share1.011.181.29
(=) Adjusted Dividend1.811.982.09
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$16.01$19.44$23.05
Upside / Downside27.75%55.16%83.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)382.61378.78374.99371.24367.53363.86374.77
Payout Ratio35.36%46.29%57.22%68.15%79.07%90.00%92.50%
Projected Dividends (M)135.30175.34214.56252.98290.62327.47346.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)159.12160.74162.37
Year 2 PV (M)176.70180.33183.99
Year 3 PV (M)189.07194.92200.89
Year 4 PV (M)197.11205.28213.70
Year 5 PV (M)201.56212.05222.98
PV of Terminal Value (M)3,509.413,692.153,882.43
Equity Value (M)4,432.974,645.484,866.36
Shares Outstanding (M)169.13169.13169.13
Fair Value$26.21$27.47$28.77
Upside / Downside109.19%119.21%129.64%

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