Definitive Analysis
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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Miller/Howard High Income Equity Fund (HIE)

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

Valuation Snapshot

Stable Growth$8.05 - $11.40$9.70
Multi-Stage$13.55 - $14.79$14.15
Blended Fair Value$11.93
Current Price$10.94
Upside9.05%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017
DPS-9.83%0.00%0.610.580.600.801.201.030.990.000.000.00
YoY Growth--5.70%-3.50%-24.98%-33.37%16.88%3.77%0.00%0.00%0.00%0.00%
Dividend Yield--6.38%5.72%5.74%13.37%10.18%9.27%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23.03
(-) Cash Dividends Paid (M)22.60
(=) Cash Retained (M)0.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.612.881.73
Cash Retained (M)0.440.440.44
(-) Cash Required (M)-4.61-2.88-1.73
(=) Excess Retained (M)-4.17-2.44-1.29
(/) Shares Outstanding (M)18.6918.6918.69
(=) Excess Retained per Share-0.22-0.13-0.07
LTM Dividend per Share1.211.211.21
(+) Excess Retained per Share-0.22-0.13-0.07
(=) Adjusted Dividend0.991.081.14
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate-2.00%-1.00%0.00%
Fair Value$8.05$9.70$11.40
Upside / Downside-26.40%-11.29%4.20%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23.0322.8022.5822.3522.1321.9022.56
Payout Ratio98.11%96.48%94.86%93.24%91.62%90.00%92.50%
Projected Dividends (M)22.6022.0021.4220.8420.2719.7120.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.00%10.00%10.00%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)19.8020.0020.20
Year 2 PV (M)17.3417.7018.06
Year 3 PV (M)15.1915.6616.14
Year 4 PV (M)13.2913.8514.41
Year 5 PV (M)11.6412.2412.87
PV of Terminal Value (M)175.96185.12194.66
Equity Value (M)253.22264.56276.34
Shares Outstanding (M)18.6918.6918.69
Fair Value$13.55$14.15$14.79
Upside / Downside23.84%29.39%35.15%

High-Yield Dividend Screener

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