Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

BlackRock Enhanced Capital and Income Fund, Inc. (CII)

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

Valuation Snapshot

Stable Growth$29.55 - $41.00$35.29
Multi-Stage$51.96 - $57.06$54.46
Blended Fair Value$44.88
Current Price$21.35
Upside110.19%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.12%-1.96%1.261.272.121.141.081.031.021.021.181.24
YoY Growth---1.13%-39.82%86.31%5.01%5.09%0.46%0.02%-13.58%-4.21%-19.37%
Dividend Yield--6.26%6.74%12.35%5.13%6.21%5.96%7.27%6.24%8.64%8.75%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)220.66
(-) Cash Dividends Paid (M)97.51
(=) Cash Retained (M)123.15
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)44.1327.5816.55
Cash Retained (M)123.15123.15123.15
(-) Cash Required (M)-44.13-27.58-16.55
(=) Excess Retained (M)79.0295.57106.60
(/) Shares Outstanding (M)42.8342.8342.83
(=) Excess Retained per Share1.842.232.49
LTM Dividend per Share2.282.282.28
(+) Excess Retained per Share1.842.232.49
(=) Adjusted Dividend4.124.514.77
WACC / Discount Rate9.44%9.44%9.44%
Growth Rate-3.96%-2.96%-1.96%
Fair Value$29.55$35.29$41.00
Upside / Downside38.40%65.30%92.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)220.66214.13207.80201.65195.69189.90195.60
Payout Ratio44.19%53.35%62.51%71.68%80.84%90.00%92.50%
Projected Dividends (M)97.51114.24129.90144.54158.19170.91180.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.44%9.44%9.44%
Growth Rate-3.96%-2.96%-1.96%
Year 1 PV (M)103.32104.39105.47
Year 2 PV (M)106.24108.46110.71
Year 3 PV (M)106.90110.28113.72
Year 4 PV (M)105.81110.28114.90
Year 5 PV (M)103.38108.88114.60
PV of Terminal Value (M)1,700.051,790.421,884.59
Equity Value (M)2,225.702,332.712,443.99
Shares Outstanding (M)42.8342.8342.83
Fair Value$51.96$54.46$57.06
Upside / Downside143.38%155.09%167.26%

High-Yield Dividend Screener

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