Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

John Hancock Financial Opportunities Fund (BTO)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$173.73 - $289.41$224.73
Multi-Stage$217.17 - $237.93$227.36
Blended Fair Value$226.04
Current Price$35.42
Upside538.17%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.79%8.30%2.472.442.271.971.992.051.551.331.311.96
YoY Growth--0.98%7.70%14.99%-0.89%-2.84%32.30%16.20%1.76%-33.16%76.28%
Dividend Yield--6.92%8.13%6.81%4.24%6.56%5.65%5.55%3.44%3.61%6.99%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)288.11
(-) Cash Dividends Paid (M)85.61
(=) Cash Retained (M)202.49
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)57.6236.0121.61
Cash Retained (M)202.49202.49202.49
(-) Cash Required (M)-57.62-36.01-21.61
(=) Excess Retained (M)144.87166.48180.89
(/) Shares Outstanding (M)19.7419.7419.74
(=) Excess Retained per Share7.348.449.17
LTM Dividend per Share4.344.344.34
(+) Excess Retained per Share7.348.449.17
(=) Adjusted Dividend11.6812.7713.50
WACC / Discount Rate8.63%8.63%8.63%
Growth Rate1.79%2.79%3.79%
Fair Value$173.73$224.73$289.41
Upside / Downside390.49%534.46%717.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)288.11296.14304.40312.89321.62330.59340.51
Payout Ratio29.72%41.77%53.83%65.89%77.94%90.00%92.50%
Projected Dividends (M)85.61123.71163.86206.15250.68297.53314.97

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.63%8.63%8.63%
Growth Rate1.79%2.79%3.79%
Year 1 PV (M)112.77113.88114.98
Year 2 PV (M)136.16138.85141.57
Year 3 PV (M)156.16160.81165.55
Year 4 PV (M)173.10180.01187.12
Year 5 PV (M)187.29196.67206.43
PV of Terminal Value (M)3,520.353,696.703,880.05
Equity Value (M)4,285.844,486.924,695.70
Shares Outstanding (M)19.7419.7419.74
Fair Value$217.17$227.36$237.93
Upside / Downside513.12%541.89%571.75%

High-Yield Dividend Screener

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