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BNY Mellon High Yield Strategies Fund (DHF)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$2.99 - $4.11$3.55
Multi-Stage$5.77 - $6.34$6.05
Blended Fair Value$4.80
Current Price$2.55
Upside88.29%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-4.32%-5.20%0.210.180.210.250.260.260.280.300.320.35
YoY Growth--16.67%-16.28%-13.18%-3.98%-1.53%-7.09%-5.05%-7.85%-7.30%-3.00%
Dividend Yield--8.24%7.56%9.91%8.91%8.35%11.54%9.01%9.40%9.50%11.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)40.14
(-) Cash Dividends Paid (M)24.55
(=) Cash Retained (M)15.59
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.035.023.01
Cash Retained (M)15.5915.5915.59
(-) Cash Required (M)-8.03-5.02-3.01
(=) Excess Retained (M)7.5610.5712.58
(/) Shares Outstanding (M)72.7472.7472.74
(=) Excess Retained per Share0.100.150.17
LTM Dividend per Share0.340.340.34
(+) Excess Retained per Share0.100.150.17
(=) Adjusted Dividend0.440.480.51
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.97%-3.97%-2.97%
Fair Value$2.99$3.55$4.11
Upside / Downside17.15%39.40%61.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)40.1438.5537.0235.5534.1432.7933.77
Payout Ratio61.16%66.92%72.69%78.46%84.23%90.00%92.50%
Projected Dividends (M)24.5525.8026.9127.9028.7629.5131.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-4.97%-3.97%-2.97%
Year 1 PV (M)23.4123.6523.90
Year 2 PV (M)22.1522.6223.09
Year 3 PV (M)20.8321.4922.17
Year 4 PV (M)19.4820.3121.17
Year 5 PV (M)18.1319.1120.12
PV of Terminal Value (M)315.75332.71350.40
Equity Value (M)419.75439.90460.86
Shares Outstanding (M)72.7472.7472.74
Fair Value$5.77$6.05$6.34
Upside / Downside126.31%137.17%148.47%

High-Yield Dividend Screener

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