Definitive Analysis
Definitive Analysis

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Credit Suisse High Yield Bond Fund, Inc. (DHY)

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

Valuation Snapshot

Stable Growth$2.95 - $4.24$3.58
Multi-Stage$5.18 - $5.66$5.42
Blended Fair Value$4.50
Current Price$2.03
Upside121.58%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-4.10%-3.66%0.190.190.190.190.200.230.250.260.270.28
YoY Growth---0.39%0.00%-2.02%-5.22%-12.30%-7.32%-4.58%-4.91%-2.04%3.06%
Dividend Yield--8.61%10.27%10.45%7.59%9.67%9.02%10.48%9.09%11.13%11.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)43.20
(-) Cash Dividends Paid (M)38.30
(=) Cash Retained (M)4.89
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.645.403.24
Cash Retained (M)4.894.894.89
(-) Cash Required (M)-8.64-5.40-3.24
(=) Excess Retained (M)-3.75-0.511.65
(/) Shares Outstanding (M)103.55103.55103.55
(=) Excess Retained per Share-0.040.000.02
LTM Dividend per Share0.370.370.37
(+) Excess Retained per Share-0.040.000.02
(=) Adjusted Dividend0.330.370.39
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.95$3.58$4.24
Upside / Downside45.17%76.29%108.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)43.2042.7642.3441.9141.4941.0842.31
Payout Ratio88.67%88.94%89.20%89.47%89.73%90.00%92.50%
Projected Dividends (M)38.3038.0337.7737.5037.2336.9739.14

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)34.5134.8635.21
Year 2 PV (M)31.0931.7332.37
Year 3 PV (M)28.0128.8829.76
Year 4 PV (M)25.2426.2827.36
Year 5 PV (M)22.7423.9225.15
PV of Terminal Value (M)394.72415.27436.67
Equity Value (M)536.31560.95586.54
Shares Outstanding (M)103.55103.55103.55
Fair Value$5.18$5.42$5.66
Upside / Downside155.14%166.86%179.04%

High-Yield Dividend Screener

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