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John Hancock Investors Trust (JHI)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$12.46 - $17.06$14.79
Multi-Stage$24.91 - $27.33$26.10
Blended Fair Value$20.44
Current Price$13.17
Upside55.24%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.43%-4.48%1.000.881.261.401.341.191.241.291.391.49
YoY Growth--14.51%-30.54%-9.92%4.32%12.36%-3.57%-4.39%-7.10%-6.71%-5.80%
Dividend Yield--7.09%7.34%10.18%7.51%8.67%6.96%7.98%7.24%8.33%9.82%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)20.93
(-) Cash Dividends Paid (M)15.69
(=) Cash Retained (M)5.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.192.621.57
Cash Retained (M)5.245.245.24
(-) Cash Required (M)-4.19-2.62-1.57
(=) Excess Retained (M)1.052.623.67
(/) Shares Outstanding (M)8.748.748.74
(=) Excess Retained per Share0.120.300.42
LTM Dividend per Share1.791.791.79
(+) Excess Retained per Share0.120.300.42
(=) Adjusted Dividend1.912.092.21
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-5.43%-4.43%-3.43%
Fair Value$12.46$14.79$17.06
Upside / Downside-5.38%12.32%29.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)20.9320.0019.1118.2717.4616.6817.18
Payout Ratio74.97%77.98%80.98%83.99%86.99%90.00%92.50%
Projected Dividends (M)15.6915.6015.4815.3415.1915.0215.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-5.43%-4.43%-3.43%
Year 1 PV (M)14.1514.2914.44
Year 2 PV (M)12.7313.0013.28
Year 3 PV (M)11.4511.8212.19
Year 4 PV (M)10.2810.7211.18
Year 5 PV (M)9.229.7210.23
PV of Terminal Value (M)160.02168.66177.67
Equity Value (M)217.84228.21238.99
Shares Outstanding (M)8.748.748.74
Fair Value$24.91$26.10$27.33
Upside / Downside89.15%98.16%107.52%

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