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PIMCO Strategic Income Fund, Inc. (RCS)

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

Valuation Snapshot

Stable Growth$9.44 - $13.59$11.47
Multi-Stage$16.33 - $17.88$17.09
Blended Fair Value$14.28
Current Price$6.96
Upside105.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-4.55%-4.67%0.480.530.530.520.520.610.690.710.760.82
YoY Growth---8.97%0.33%0.55%1.20%-14.74%-12.31%-2.36%-7.17%-7.53%6.41%
Dividend Yield--6.90%8.43%10.11%10.19%6.79%9.51%7.04%7.31%7.48%8.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)61.98
(-) Cash Dividends Paid (M)46.80
(=) Cash Retained (M)15.18
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.407.754.65
Cash Retained (M)15.1815.1815.18
(-) Cash Required (M)-12.40-7.75-4.65
(=) Excess Retained (M)2.787.4310.53
(/) Shares Outstanding (M)46.4546.4546.45
(=) Excess Retained per Share0.060.160.23
LTM Dividend per Share1.011.011.01
(+) Excess Retained per Share0.060.160.23
(=) Adjusted Dividend1.071.171.23
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$9.44$11.47$13.59
Upside / Downside35.65%64.76%95.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)61.9861.3660.7560.1459.5458.9560.71
Payout Ratio75.51%78.41%81.30%84.20%87.10%90.00%92.50%
Projected Dividends (M)46.8048.1149.3950.6451.8653.0556.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)43.6644.1144.55
Year 2 PV (M)40.6841.5142.35
Year 3 PV (M)37.8539.0240.21
Year 4 PV (M)35.1736.6338.13
Year 5 PV (M)32.6534.3536.12
PV of Terminal Value (M)568.53598.13628.96
Equity Value (M)758.54793.76830.34
Shares Outstanding (M)46.4546.4546.45
Fair Value$16.33$17.09$17.88
Upside / Downside134.62%145.51%156.83%

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