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DoubleLine Income Solutions Fund (DSL)

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

Valuation Snapshot

Stable Growth$24.06 - $34.63$29.22
Multi-Stage$40.39 - $44.28$42.30
Blended Fair Value$35.76
Current Price$12.28
Upside191.19%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-4.56%0.00%1.311.211.381.611.311.651.631.691.671.74
YoY Growth--7.96%-12.04%-14.28%23.18%-21.02%1.47%-3.66%1.24%-4.13%0.00%
Dividend Yield--10.66%9.35%11.77%14.90%7.35%10.32%8.18%8.30%7.86%9.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)373.74
(-) Cash Dividends Paid (M)203.70
(=) Cash Retained (M)170.04
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)74.7546.7228.03
Cash Retained (M)170.04170.04170.04
(-) Cash Required (M)-74.75-46.72-28.03
(=) Excess Retained (M)95.30123.33142.01
(/) Shares Outstanding (M)109.74109.74109.74
(=) Excess Retained per Share0.871.121.29
LTM Dividend per Share1.861.861.86
(+) Excess Retained per Share0.871.121.29
(=) Adjusted Dividend2.722.983.15
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$24.06$29.22$34.63
Upside / Downside95.92%137.91%181.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)373.74370.00366.30362.64359.01355.42366.09
Payout Ratio54.50%61.60%68.70%75.80%82.90%90.00%92.50%
Projected Dividends (M)203.70227.93251.66274.88297.62319.88338.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)206.81208.92211.03
Year 2 PV (M)207.18211.43215.73
Year 3 PV (M)205.34211.69218.17
Year 4 PV (M)201.73210.09218.71
Year 5 PV (M)196.73206.97217.64
PV of Terminal Value (M)3,415.143,592.983,778.14
Equity Value (M)4,432.934,642.084,859.41
Shares Outstanding (M)109.74109.74109.74
Fair Value$40.39$42.30$44.28
Upside / Downside228.94%244.46%260.59%

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