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Flaherty & Crumrine Preferred Income Fund Inc. (PFD)

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

Valuation Snapshot

Stable Growth$18.24 - $25.64$21.91
Multi-Stage$32.43 - $35.60$33.99
Blended Fair Value$27.95
Current Price$11.03
Upside153.39%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.36%-3.23%0.690.680.840.840.770.740.790.830.870.88
YoY Growth--1.36%-18.42%-0.96%8.84%4.79%-6.90%-4.05%-5.16%-1.16%-7.93%
Dividend Yield--6.06%6.94%7.37%4.90%4.10%4.54%6.58%5.34%6.55%6.68%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)37.75
(-) Cash Dividends Paid (M)18.32
(=) Cash Retained (M)19.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.554.722.83
Cash Retained (M)19.4419.4419.44
(-) Cash Required (M)-7.55-4.72-2.83
(=) Excess Retained (M)11.8914.7216.61
(/) Shares Outstanding (M)12.8512.8512.85
(=) Excess Retained per Share0.921.151.29
LTM Dividend per Share1.431.431.43
(+) Excess Retained per Share0.921.151.29
(=) Adjusted Dividend2.352.572.72
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.36%-2.36%-1.36%
Fair Value$18.24$21.91$25.64
Upside / Downside65.33%98.65%132.45%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)37.7536.8636.0035.1534.3233.5134.52
Payout Ratio48.51%56.81%65.11%73.41%81.70%90.00%92.50%
Projected Dividends (M)18.3220.9423.4425.8028.0430.1631.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.36%-2.36%-1.36%
Year 1 PV (M)19.0019.2019.39
Year 2 PV (M)19.2919.6920.10
Year 3 PV (M)19.2719.8720.49
Year 4 PV (M)18.9919.7920.62
Year 5 PV (M)18.5419.5120.53
PV of Terminal Value (M)321.77338.76356.47
Equity Value (M)416.85436.83457.60
Shares Outstanding (M)12.8512.8512.85
Fair Value$32.43$33.99$35.60
Upside / Downside194.05%208.14%222.79%

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