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Flaherty & Crumrine Total Return Fund Inc. (FLC)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$18.36 - $25.09$21.78
Multi-Stage$35.30 - $38.84$37.03
Blended Fair Value$29.41
Current Price$16.63
Upside76.82%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.66%-4.18%0.850.881.101.121.061.021.101.161.191.23
YoY Growth---3.11%-20.61%-1.53%5.24%4.10%-6.91%-5.14%-2.37%-3.67%-5.36%
Dividend Yield--5.08%6.16%6.82%4.95%4.60%4.63%6.44%5.43%5.91%6.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)46.89
(-) Cash Dividends Paid (M)20.05
(=) Cash Retained (M)26.84
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.385.863.52
Cash Retained (M)26.8426.8426.84
(-) Cash Required (M)-9.38-5.86-3.52
(=) Excess Retained (M)17.4620.9823.32
(/) Shares Outstanding (M)13.0713.0713.07
(=) Excess Retained per Share1.341.601.78
LTM Dividend per Share1.531.531.53
(+) Excess Retained per Share1.341.601.78
(=) Adjusted Dividend2.873.143.32
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-5.66%-4.66%-3.66%
Fair Value$18.36$21.78$25.09
Upside / Downside10.43%30.94%50.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)46.8944.7142.6240.6338.7436.9338.04
Payout Ratio42.77%52.21%61.66%71.11%80.55%90.00%92.50%
Projected Dividends (M)20.0523.3426.2828.8931.2133.2435.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-5.66%-4.66%-3.66%
Year 1 PV (M)21.1721.4021.62
Year 2 PV (M)21.6322.0922.55
Year 3 PV (M)21.5722.2622.97
Year 4 PV (M)21.1322.0422.98
Year 5 PV (M)20.4221.5222.68
PV of Terminal Value (M)355.52374.76394.83
Equity Value (M)461.44484.08507.64
Shares Outstanding (M)13.0713.0713.07
Fair Value$35.30$37.03$38.84
Upside / Downside112.28%122.70%133.54%

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