Definitive Analysis
Definitive Analysis
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Nuveen Preferred & Income Opportunities Fund (JPC)

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

Valuation Snapshot

Stable Growth$38.14 - $101.18$58.32
Multi-Stage$27.42 - $29.89$28.63
Blended Fair Value$43.48
Current Price$7.96
Upside446.19%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS12.48%6.34%0.510.230.250.250.270.280.300.290.290.28
YoY Growth--119.34%-6.24%0.87%-10.05%-3.53%-5.67%4.98%-1.81%4.27%1.27%
Dividend Yield--6.66%3.53%2.96%2.46%3.11%2.87%3.19%2.71%2.79%3.05%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)433.02
(-) Cash Dividends Paid (M)291.97
(=) Cash Retained (M)141.05
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)86.6054.1332.48
Cash Retained (M)141.05141.05141.05
(-) Cash Required (M)-86.60-54.13-32.48
(=) Excess Retained (M)54.4486.92108.57
(/) Shares Outstanding (M)266.31266.31266.31
(=) Excess Retained per Share0.200.330.41
LTM Dividend per Share1.101.101.10
(+) Excess Retained per Share0.200.330.41
(=) Adjusted Dividend1.301.421.50
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$38.14$58.32$101.18
Upside / Downside379.16%632.69%1,171.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)433.02461.17491.14523.07557.07593.28611.08
Payout Ratio67.43%71.94%76.46%80.97%85.49%90.00%92.50%
Projected Dividends (M)291.97331.77375.51423.53476.21533.95565.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)301.25304.10306.96
Year 2 PV (M)309.59315.49321.44
Year 3 PV (M)317.06326.16335.44
Year 4 PV (M)323.70336.15348.95
Year 5 PV (M)329.56345.47362.00
PV of Terminal Value (M)5,721.105,997.436,284.34
Equity Value (M)7,302.267,624.817,959.13
Shares Outstanding (M)266.31266.31266.31
Fair Value$27.42$28.63$29.89
Upside / Downside244.47%259.69%275.46%

High-Yield Dividend Screener

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