Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Henderson High Income Trust plc (HHI.L)

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

Valuation Snapshot

Stable Growth$17.06 - $94.35$32.83
Multi-Stage$12.92 - $14.15$13.53
Blended Fair Value$23.18
Current Price$1.80
Upside1,187.58%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.36%6.58%0.110.080.080.080.080.080.080.070.060.06
YoY Growth--27.53%2.42%2.41%0.11%1.65%1.88%13.04%7.23%5.09%7.00%
Dividend Yield--6.51%5.30%4.92%4.46%5.39%4.06%4.78%3.56%3.43%3.32%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)77.02
(-) Cash Dividends Paid (M)32.87
(=) Cash Retained (M)44.14
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.409.635.78
Cash Retained (M)44.1444.1444.14
(-) Cash Required (M)-15.40-9.63-5.78
(=) Excess Retained (M)28.7434.5238.37
(/) Shares Outstanding (M)160.47160.47160.47
(=) Excess Retained per Share0.180.220.24
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share0.180.220.24
(=) Adjusted Dividend0.380.420.44
WACC / Discount Rate6.61%6.61%6.61%
Growth Rate4.26%5.26%6.26%
Fair Value$17.06$32.83$94.35
Upside / Downside847.76%1,723.78%5,141.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)77.0281.0785.3489.8394.5599.53102.52
Payout Ratio42.68%52.15%61.61%71.07%80.54%90.00%92.50%
Projected Dividends (M)32.8742.2752.5763.8476.1589.5894.83

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.61%6.61%6.61%
Growth Rate4.26%5.26%6.26%
Year 1 PV (M)39.2839.6540.03
Year 2 PV (M)45.3846.2647.14
Year 3 PV (M)51.2052.6954.21
Year 4 PV (M)56.7458.9561.22
Year 5 PV (M)62.0165.0568.20
PV of Terminal Value (M)1,818.911,907.832,000.19
Equity Value (M)2,073.532,170.422,270.98
Shares Outstanding (M)160.47160.47160.47
Fair Value$12.92$13.53$14.15
Upside / Downside617.85%651.39%686.20%

High-Yield Dividend Screener

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