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Blackstone/GSO Strategic Credit Fund (BGB)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$23.24 - $35.25$28.88
Multi-Stage$35.48 - $38.76$37.09
Blended Fair Value$32.99
Current Price$12.12
Upside172.17%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-6.15%0.00%1.141.120.890.871.131.561.261.341.261.26
YoY Growth--1.97%25.68%1.72%-22.47%-27.96%23.56%-5.88%6.67%0.00%0.00%
Dividend Yield--9.30%9.86%8.39%6.47%9.02%10.87%9.39%8.56%8.21%9.42%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)116.39
(-) Cash Dividends Paid (M)100.94
(=) Cash Retained (M)15.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.2814.558.73
Cash Retained (M)15.4515.4515.45
(-) Cash Required (M)-23.28-14.55-8.73
(=) Excess Retained (M)-7.830.906.72
(/) Shares Outstanding (M)44.6644.6644.66
(=) Excess Retained per Share-0.180.020.15
LTM Dividend per Share2.262.262.26
(+) Excess Retained per Share-0.180.020.15
(=) Adjusted Dividend2.082.282.41
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.12%1.12%2.12%
Fair Value$23.24$28.88$35.25
Upside / Downside91.72%138.32%190.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)116.39117.69119.00120.33121.68123.03126.72
Payout Ratio86.72%87.38%88.03%88.69%89.34%90.00%92.50%
Projected Dividends (M)100.94102.84104.77106.72108.71110.73117.22

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.12%1.12%2.12%
Year 1 PV (M)93.3394.2695.19
Year 2 PV (M)86.2988.0289.77
Year 3 PV (M)79.7782.1984.65
Year 4 PV (M)73.7576.7479.82
Year 5 PV (M)68.1771.6475.26
PV of Terminal Value (M)1,183.441,243.741,306.47
Equity Value (M)1,584.751,656.591,731.16
Shares Outstanding (M)44.6644.6644.66
Fair Value$35.48$37.09$38.76
Upside / Downside192.75%206.02%219.80%

High-Yield Dividend Screener

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