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BlackRock Enhanced Equity Dividend Trust (BDJ)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$12.54 - $17.65$15.08
Multi-Stage$23.03 - $25.23$24.11
Blended Fair Value$19.59
Current Price$8.89
Upside120.38%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.18%0.08%0.690.751.120.880.620.770.580.580.580.58
YoY Growth---7.42%-33.18%26.52%41.14%-18.93%33.04%-0.27%-0.51%-0.02%-14.74%
Dividend Yield--8.33%9.69%12.38%8.74%7.37%7.76%7.45%6.29%7.16%7.67%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)365.37
(-) Cash Dividends Paid (M)264.16
(=) Cash Retained (M)101.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)73.0745.6727.40
Cash Retained (M)101.21101.21101.21
(-) Cash Required (M)-73.07-45.67-27.40
(=) Excess Retained (M)28.1455.5473.81
(/) Shares Outstanding (M)181.54181.54181.54
(=) Excess Retained per Share0.150.310.41
LTM Dividend per Share1.461.461.46
(+) Excess Retained per Share0.150.310.41
(=) Adjusted Dividend1.611.761.86
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.31%-2.31%-1.31%
Fair Value$12.54$15.08$17.65
Upside / Downside41.11%69.60%98.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)365.37356.92348.67340.61332.74325.04334.79
Payout Ratio72.30%75.84%79.38%82.92%86.46%90.00%92.50%
Projected Dividends (M)264.16270.69276.77282.43287.68292.54309.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-3.31%-2.31%-1.31%
Year 1 PV (M)245.57248.11250.65
Year 2 PV (M)227.80232.54237.32
Year 3 PV (M)210.89217.50224.25
Year 4 PV (M)194.88203.07211.51
Year 5 PV (M)179.79189.28199.17
PV of Terminal Value (M)3,121.093,285.863,457.52
Equity Value (M)4,180.024,376.364,580.43
Shares Outstanding (M)181.54181.54181.54
Fair Value$23.03$24.11$25.23
Upside / Downside159.00%171.17%183.81%

High-Yield Dividend Screener

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