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Lazard Global Total Return and Income Fund, Inc. (LGI)

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

Valuation Snapshot

Stable Growth$18.37 - $26.45$22.31
Multi-Stage$32.03 - $35.05$33.51
Blended Fair Value$27.91
Current Price$16.80
Upside66.15%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.48%5.18%1.220.901.671.101.020.651.600.580.560.66
YoY Growth--35.99%-46.24%50.95%8.13%57.74%-59.49%175.79%2.96%-14.37%-10.63%
Dividend Yield--7.63%5.85%11.39%5.47%5.74%3.91%11.74%3.21%4.10%5.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)42.31
(-) Cash Dividends Paid (M)34.91
(=) Cash Retained (M)7.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.465.293.17
Cash Retained (M)7.407.407.40
(-) Cash Required (M)-8.46-5.29-3.17
(=) Excess Retained (M)-1.072.114.22
(/) Shares Outstanding (M)16.2716.2716.27
(=) Excess Retained per Share-0.070.130.26
LTM Dividend per Share2.152.152.15
(+) Excess Retained per Share-0.070.130.26
(=) Adjusted Dividend2.082.282.41
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$18.37$22.31$26.45
Upside / Downside9.37%32.82%57.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)42.3141.8941.4741.0540.6440.2441.44
Payout Ratio82.52%84.01%85.51%87.01%88.50%90.00%92.50%
Projected Dividends (M)34.9135.1935.4635.7235.9736.2138.33

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)31.9332.2632.58
Year 2 PV (M)29.1929.7930.40
Year 3 PV (M)26.6827.5128.35
Year 4 PV (M)24.3825.3926.43
Year 5 PV (M)22.2723.4324.64
PV of Terminal Value (M)386.61406.75427.71
Equity Value (M)521.07545.12570.10
Shares Outstanding (M)16.2716.2716.27
Fair Value$32.03$33.51$35.05
Upside / Downside90.68%99.48%108.62%

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