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Cohen & Steers Select Preferred and Income Fund, Inc. (PSF)

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

Valuation Snapshot

Stable Growth$23.34 - $31.26$27.42
Multi-Stage$48.40 - $53.27$50.79
Blended Fair Value$39.11
Current Price$20.14
Upside94.17%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS-5.86%0.00%1.511.562.161.861.962.052.162.430.000.00
YoY Growth---3.29%-27.61%15.85%-4.68%-4.37%-5.23%-11.07%0.00%0.00%0.00%
Dividend Yield--7.65%8.27%11.54%6.96%6.96%6.49%9.08%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)64.59
(-) Cash Dividends Paid (M)36.35
(=) Cash Retained (M)28.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.928.074.84
Cash Retained (M)28.2428.2428.24
(-) Cash Required (M)-12.92-8.07-4.84
(=) Excess Retained (M)15.3220.1623.39
(/) Shares Outstanding (M)12.0312.0312.03
(=) Excess Retained per Share1.271.681.94
LTM Dividend per Share3.023.023.02
(+) Excess Retained per Share1.271.681.94
(=) Adjusted Dividend4.304.704.97
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-7.86%-6.86%-5.86%
Fair Value$23.34$27.42$31.26
Upside / Downside15.89%36.16%55.21%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)64.5960.1656.0352.1848.6045.2746.63
Payout Ratio56.28%63.02%69.77%76.51%83.26%90.00%92.50%
Projected Dividends (M)36.3537.9139.0939.9340.4740.7443.13

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-7.86%-6.86%-5.86%
Year 1 PV (M)34.3834.7535.12
Year 2 PV (M)32.1432.8433.55
Year 3 PV (M)29.7730.7531.75
Year 4 PV (M)27.3628.5629.81
Year 5 PV (M)24.9826.3627.81
PV of Terminal Value (M)433.59457.63482.73
Equity Value (M)582.21610.90640.78
Shares Outstanding (M)12.0312.0312.03
Fair Value$48.40$50.79$53.27
Upside / Downside140.34%152.18%164.52%

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