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Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB)

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

Valuation Snapshot

Stable Growth$47.76 - $80.96$62.23
Multi-Stage$57.07 - $62.29$59.63
Blended Fair Value$60.93
Current Price$14.93
Upside308.10%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.26%0.00%1.541.411.341.251.161.091.081.081.111.19
YoY Growth--9.28%5.42%6.92%7.99%6.72%0.68%-0.56%-2.41%-6.54%0.00%
Dividend Yield--10.33%8.68%8.20%6.44%4.75%4.62%4.61%5.06%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)92.58
(-) Cash Dividends Paid (M)68.85
(=) Cash Retained (M)23.73
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)18.5211.576.94
Cash Retained (M)23.7323.7323.73
(-) Cash Required (M)-18.52-11.57-6.94
(=) Excess Retained (M)5.2112.1616.79
(/) Shares Outstanding (M)24.2224.2224.22
(=) Excess Retained per Share0.220.500.69
LTM Dividend per Share2.842.842.84
(+) Excess Retained per Share0.220.500.69
(=) Adjusted Dividend3.063.343.54
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.53%3.53%4.53%
Fair Value$47.76$62.23$80.96
Upside / Downside219.89%316.78%442.30%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)92.5895.8599.24102.75106.38110.13113.44
Payout Ratio74.37%77.50%80.62%83.75%86.87%90.00%92.50%
Projected Dividends (M)68.8574.2880.0186.0592.4199.12104.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.53%3.53%4.53%
Year 1 PV (M)67.4368.0968.75
Year 2 PV (M)65.9367.2268.53
Year 3 PV (M)64.3666.2768.20
Year 4 PV (M)62.7565.2367.79
Year 5 PV (M)61.1064.1367.29
PV of Terminal Value (M)1,060.611,113.351,168.17
Equity Value (M)1,382.181,444.291,508.73
Shares Outstanding (M)24.2224.2224.22
Fair Value$57.07$59.63$62.29
Upside / Downside282.24%299.41%317.23%

High-Yield Dividend Screener

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