Definitive Analysis
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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Calamos Strategic Total Return Fund (CSQ)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$82.31 - $166.70$114.92
Multi-Stage$85.96 - $94.02$89.91
Blended Fair Value$102.42
Current Price$16.05
Upside538.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.34%0.00%1.231.161.171.111.020.950.940.950.950.95
YoY Growth--5.65%-0.59%5.48%8.16%8.27%0.06%-0.94%0.00%0.00%0.00%
Dividend Yield--7.08%9.05%8.49%5.83%8.00%7.26%8.04%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)763.92
(-) Cash Dividends Paid (M)390.35
(=) Cash Retained (M)373.57
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)152.7895.4957.29
Cash Retained (M)373.57373.57373.57
(-) Cash Required (M)-152.78-95.49-57.29
(=) Excess Retained (M)220.79278.08316.28
(/) Shares Outstanding (M)160.36160.36160.36
(=) Excess Retained per Share1.381.731.97
LTM Dividend per Share2.432.432.43
(+) Excess Retained per Share1.381.731.97
(=) Adjusted Dividend3.814.174.41
WACC / Discount Rate8.13%8.13%8.13%
Growth Rate3.34%4.34%5.34%
Fair Value$82.31$114.92$166.70
Upside / Downside412.85%616.01%938.61%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)763.92797.09831.71867.82905.50944.82973.17
Payout Ratio51.10%58.88%66.66%74.44%82.22%90.00%92.50%
Projected Dividends (M)390.35469.32554.41646.00744.50850.34900.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.13%8.13%8.13%
Growth Rate3.34%4.34%5.34%
Year 1 PV (M)429.88434.04438.20
Year 2 PV (M)465.15474.20483.33
Year 3 PV (M)496.46511.01525.84
Year 4 PV (M)524.08544.67565.85
Year 5 PV (M)548.29575.34603.44
PV of Terminal Value (M)11,321.0911,879.5412,459.81
Equity Value (M)13,784.9614,418.8015,076.48
Shares Outstanding (M)160.36160.36160.36
Fair Value$85.96$89.91$94.02
Upside / Downside435.59%460.22%485.77%

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