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Neuberger Berman MLP and Energy Income Fund Inc. (NML)

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

Valuation Snapshot

Stable Growth$24.65 - $35.49$29.94
Multi-Stage$40.64 - $44.60$42.58
Blended Fair Value$36.26
Current Price$8.53
Upside325.12%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.19%-5.68%0.700.700.240.180.320.660.660.660.851.25
YoY Growth--0.04%190.27%32.26%-43.68%-50.94%0.00%0.02%-22.25%-32.13%-0.47%
Dividend Yield--7.42%10.14%3.35%3.63%9.88%10.45%8.77%7.82%9.10%11.81%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)197.41
(-) Cash Dividends Paid (M)79.39
(=) Cash Retained (M)118.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.4824.6814.81
Cash Retained (M)118.02118.02118.02
(-) Cash Required (M)-39.48-24.68-14.81
(=) Excess Retained (M)78.5393.34103.21
(/) Shares Outstanding (M)56.6656.6656.66
(=) Excess Retained per Share1.391.651.82
LTM Dividend per Share1.401.401.40
(+) Excess Retained per Share1.391.651.82
(=) Adjusted Dividend2.793.053.22
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$24.65$29.94$35.49
Upside / Downside189.02%251.02%316.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)197.41195.44193.48191.55189.63187.74193.37
Payout Ratio40.22%50.17%60.13%70.09%80.04%90.00%92.50%
Projected Dividends (M)79.3998.06116.34134.25151.79168.96178.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)88.9989.9090.80
Year 2 PV (M)95.8197.7899.76
Year 3 PV (M)100.33103.44106.60
Year 4 PV (M)102.95107.22111.61
Year 5 PV (M)104.00109.41115.05
PV of Terminal Value (M)1,810.711,905.002,003.18
Equity Value (M)2,302.792,412.742,527.01
Shares Outstanding (M)56.6656.6656.66
Fair Value$40.64$42.58$44.60
Upside / Downside376.47%399.22%422.87%

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