Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

PIMCO Corporate & Income Opportunity Fund (PTY)

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

Valuation Snapshot

Stable Growth$11.15 - $16.65$13.76
Multi-Stage$22.53 - $24.71$23.60
Blended Fair Value$18.68
Current Price$13.91
Upside34.30%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS10.49%0.00%1.281.091.040.800.870.780.740.660.670.00
YoY Growth--17.84%4.50%30.80%-8.39%11.56%6.10%10.72%-0.94%0.00%0.00%
Dividend Yield--9.23%7.57%7.98%6.78%4.75%4.85%3.95%3.96%3.99%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)230.42
(-) Cash Dividends Paid (M)203.69
(=) Cash Retained (M)26.73
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)46.0828.8017.28
Cash Retained (M)26.7326.7326.73
(-) Cash Required (M)-46.08-28.80-17.28
(=) Excess Retained (M)-19.35-2.079.45
(/) Shares Outstanding (M)169.86169.86169.86
(=) Excess Retained per Share-0.11-0.010.06
LTM Dividend per Share1.201.201.20
(+) Excess Retained per Share-0.11-0.010.06
(=) Adjusted Dividend1.091.191.25
WACC / Discount Rate7.54%7.54%7.54%
Growth Rate-2.00%-1.00%0.00%
Fair Value$11.15$13.76$16.65
Upside / Downside-19.83%-1.04%19.69%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)230.42228.11225.83223.57221.34219.13225.70
Payout Ratio88.40%88.72%89.04%89.36%89.68%90.00%92.50%
Projected Dividends (M)203.69202.38201.08199.79198.50197.21208.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.54%7.54%7.54%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)186.30188.20190.10
Year 2 PV (M)170.39173.88177.41
Year 3 PV (M)155.84160.65165.57
Year 4 PV (M)142.52148.43154.52
Year 5 PV (M)130.35137.14144.20
PV of Terminal Value (M)3,041.523,199.903,364.81
Equity Value (M)3,826.914,008.204,196.61
Shares Outstanding (M)169.86169.86169.86
Fair Value$22.53$23.60$24.71
Upside / Downside61.97%69.64%77.61%

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