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Ameriprise Financial, Inc. (AMP)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$409.38 - $666.28$524.43
Multi-Stage$490.95 - $538.11$514.09
Blended Fair Value$519.26
Current Price$491.25
Upside5.70%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS2.64%3.03%5.775.535.375.145.005.075.094.944.824.68
YoY Growth--4.36%3.00%4.50%2.82%-1.39%-0.40%3.05%2.51%3.01%9.15%
Dividend Yield--1.19%1.27%1.75%1.71%2.15%4.95%3.83%3.34%3.71%4.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,626.00
(-) Cash Dividends Paid (M)591.00
(=) Cash Retained (M)3,035.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)725.20453.25271.95
Cash Retained (M)3,035.003,035.003,035.00
(-) Cash Required (M)-725.20-453.25-271.95
(=) Excess Retained (M)2,309.802,581.752,763.05
(/) Shares Outstanding (M)99.4599.4599.45
(=) Excess Retained per Share23.2325.9627.78
LTM Dividend per Share5.945.945.94
(+) Excess Retained per Share23.2325.9627.78
(=) Adjusted Dividend29.1731.9033.73
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.84%2.84%3.84%
Fair Value$409.38$524.43$666.28
Upside / Downside-16.67%6.75%35.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,626.003,729.043,835.013,943.994,056.074,171.334,296.47
Payout Ratio16.30%31.04%45.78%60.52%75.26%90.00%92.50%
Projected Dividends (M)591.001,157.461,755.642,386.893,052.593,754.203,974.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.84%2.84%3.84%
Year 1 PV (M)1,050.621,060.941,071.26
Year 2 PV (M)1,446.491,475.041,503.86
Year 3 PV (M)1,785.051,838.151,892.30
Year 4 PV (M)2,072.182,154.772,239.81
Year 5 PV (M)2,313.212,429.032,549.45
PV of Terminal Value (M)40,157.2942,167.9544,258.34
Equity Value (M)48,824.8551,125.8853,515.02
Shares Outstanding (M)99.4599.4599.45
Fair Value$490.95$514.09$538.11
Upside / Downside-0.06%4.65%9.54%

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