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Allspring Utilities and High Income Fund (ERH)

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

Valuation Snapshot

Stable Growth$27.31 - $39.32$33.17
Multi-Stage$44.45 - $48.81$46.59
Blended Fair Value$39.88
Current Price$12.02
Upside231.75%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.000.800.920.910.870.960.910.920.910.92
YoY Growth---100.00%-12.75%0.29%4.66%-8.70%4.66%-1.01%1.09%-0.22%-0.53%
Dividend Yield--0.00%7.44%9.48%7.41%5.94%7.48%7.01%7.30%6.85%7.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)34.67
(-) Cash Dividends Paid (M)10.77
(=) Cash Retained (M)23.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.934.332.60
Cash Retained (M)23.9023.9023.90
(-) Cash Required (M)-6.93-4.33-2.60
(=) Excess Retained (M)16.9619.5621.30
(/) Shares Outstanding (M)8.988.988.98
(=) Excess Retained per Share1.892.182.37
LTM Dividend per Share1.201.201.20
(+) Excess Retained per Share1.892.182.37
(=) Adjusted Dividend3.093.383.57
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$27.31$33.17$39.32
Upside / Downside127.20%175.94%227.10%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)34.6734.3233.9833.6433.3032.9733.96
Payout Ratio31.06%42.85%54.64%66.43%78.21%90.00%92.50%
Projected Dividends (M)10.7714.7118.5722.3426.0529.6731.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)13.3513.4813.62
Year 2 PV (M)15.2915.6015.92
Year 3 PV (M)16.7017.2217.74
Year 4 PV (M)17.6718.4019.15
Year 5 PV (M)18.2619.2120.20
PV of Terminal Value (M)317.98334.54351.78
Equity Value (M)399.25418.46438.42
Shares Outstanding (M)8.988.988.98
Fair Value$44.45$46.59$48.81
Upside / Downside269.78%287.57%306.06%

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