Definitive Analysis
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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

John Hancock Income Securities Trust (JHS)

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

Valuation Snapshot

Stable Growth$5.01 - $6.89$5.96
Multi-Stage$12.03 - $13.22$12.61
Blended Fair Value$9.29
Current Price$11.36
Upside-18.26%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-6.88%-6.97%0.470.410.920.880.750.670.740.810.850.90
YoY Growth--12.52%-54.96%4.23%17.60%12.70%-9.91%-8.70%-4.83%-5.69%-6.05%
Dividend Yield--4.09%4.23%8.78%5.73%4.86%4.57%5.63%5.47%5.97%6.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)10.96
(-) Cash Dividends Paid (M)10.40
(=) Cash Retained (M)0.56
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.191.370.82
Cash Retained (M)0.560.560.56
(-) Cash Required (M)-2.19-1.37-0.82
(=) Excess Retained (M)-1.63-0.81-0.26
(/) Shares Outstanding (M)11.6511.6511.65
(=) Excess Retained per Share-0.14-0.07-0.02
LTM Dividend per Share0.890.890.89
(+) Excess Retained per Share-0.14-0.07-0.02
(=) Adjusted Dividend0.750.820.87
WACC / Discount Rate7.88%7.88%7.88%
Growth Rate-6.21%-5.21%-4.21%
Fair Value$5.01$5.96$6.89
Upside / Downside-55.91%-47.54%-39.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)10.9610.389.849.338.848.388.63
Payout Ratio94.90%93.92%92.94%91.96%90.98%90.00%92.50%
Projected Dividends (M)10.409.759.158.588.057.547.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.88%7.88%7.88%
Growth Rate-6.21%-5.21%-4.21%
Year 1 PV (M)8.959.049.14
Year 2 PV (M)7.707.868.03
Year 3 PV (M)6.626.837.05
Year 4 PV (M)5.695.946.20
Year 5 PV (M)4.905.165.44
PV of Terminal Value (M)106.27112.06118.10
Equity Value (M)140.12146.90153.95
Shares Outstanding (M)11.6511.6511.65
Fair Value$12.03$12.61$13.22
Upside / Downside5.91%11.03%16.36%

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