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Assurant, Inc. 5.25% Subordinat (AIZN)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$204.23 - $345.54$265.87
Multi-Stage$228.95 - $250.76$239.65
Blended Fair Value$252.76
Current Price$216.60
Upside16.70%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.59%7.24%3.022.952.913.052.992.932.592.302.431.82
YoY Growth--2.36%1.40%-4.70%1.94%2.11%13.15%12.44%-5.06%33.11%21.51%
Dividend Yield--1.44%1.57%2.42%1.68%2.11%2.81%2.69%2.52%2.54%2.36%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)848.80
(-) Cash Dividends Paid (M)165.30
(=) Cash Retained (M)683.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)169.76106.1063.66
Cash Retained (M)683.50683.50683.50
(-) Cash Required (M)-169.76-106.10-63.66
(=) Excess Retained (M)513.74577.40619.84
(/) Shares Outstanding (M)51.6751.6751.67
(=) Excess Retained per Share9.9411.1711.99
LTM Dividend per Share3.203.203.20
(+) Excess Retained per Share9.9411.1711.99
(=) Adjusted Dividend13.1414.3715.19
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.50%3.50%4.50%
Fair Value$204.23$265.87$345.54
Upside / Downside-5.71%22.75%59.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)848.80878.53909.31941.16974.131,008.251,038.50
Payout Ratio19.47%33.58%47.68%61.79%75.89%90.00%92.50%
Projected Dividends (M)165.30295.01433.60581.54739.31907.42960.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.50%3.50%4.50%
Year 1 PV (M)267.79270.41273.02
Year 2 PV (M)357.29364.30371.37
Year 3 PV (M)434.99447.85460.95
Year 4 PV (M)501.99521.87542.33
Year 5 PV (M)559.30587.12616.03
PV of Terminal Value (M)9,709.4210,192.3710,694.35
Equity Value (M)11,830.7912,383.9012,958.05
Shares Outstanding (M)51.6751.6751.67
Fair Value$228.95$239.65$250.76
Upside / Downside5.70%10.64%15.77%

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