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Wells Fargo Advantage Funds - Allspring Income Opportunities Fund (EAD)

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

Valuation Snapshot

Stable Growth$16.53 - $23.79$20.07
Multi-Stage$27.65 - $30.32$28.96
Blended Fair Value$24.52
Current Price$6.74
Upside263.73%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-3.16%-4.31%0.630.590.680.730.700.740.770.820.970.98
YoY Growth--6.00%-12.76%-6.34%3.81%-5.26%-3.84%-5.77%-15.86%-0.63%-0.28%
Dividend Yield--9.35%9.21%10.66%9.65%8.11%10.86%9.51%10.12%11.25%12.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)138.55
(-) Cash Dividends Paid (M)72.43
(=) Cash Retained (M)66.13
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)27.7117.3210.39
Cash Retained (M)66.1366.1366.13
(-) Cash Required (M)-27.71-17.32-10.39
(=) Excess Retained (M)38.4248.8155.74
(/) Shares Outstanding (M)59.1659.1659.16
(=) Excess Retained per Share0.650.830.94
LTM Dividend per Share1.221.221.22
(+) Excess Retained per Share0.650.830.94
(=) Adjusted Dividend1.872.052.17
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate-2.00%-1.00%0.00%
Fair Value$16.53$20.07$23.79
Upside / Downside145.27%197.81%252.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)138.55137.17135.80134.44133.10131.76135.72
Payout Ratio52.27%59.82%67.36%74.91%82.45%90.00%92.50%
Projected Dividends (M)72.4382.0591.48100.71109.74118.59125.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)74.4475.2075.96
Year 2 PV (M)75.3076.8478.40
Year 3 PV (M)75.2177.5479.91
Year 4 PV (M)74.3677.4480.62
Year 5 PV (M)72.9076.7080.65
PV of Terminal Value (M)1,263.691,329.491,398.01
Equity Value (M)1,635.901,713.211,793.55
Shares Outstanding (M)59.1659.1659.16
Fair Value$27.65$28.96$30.32
Upside / Downside310.26%329.65%349.80%

High-Yield Dividend Screener

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