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Apollo Tactical Income Fund Inc. (AIF)

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

Valuation Snapshot

Stable Growth$41.55 - $64.04$52.00
Multi-Stage$59.14 - $64.69$61.87
Blended Fair Value$56.93
Current Price$13.96
Upside307.84%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202320222021202020192018201720162015
DPS2.35%2.58%1.481.181.100.961.241.321.291.521.561.65
YoY Growth--25.94%6.91%14.11%-22.32%-5.91%2.34%-15.07%-2.99%-5.32%43.97%
Dividend Yield--10.61%9.70%7.18%6.66%8.22%9.58%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)63.59
(-) Cash Dividends Paid (M)38.43
(=) Cash Retained (M)25.15
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)12.727.954.77
Cash Retained (M)25.1525.1525.15
(-) Cash Required (M)-12.72-7.95-4.77
(=) Excess Retained (M)12.4417.2120.39
(/) Shares Outstanding (M)14.4614.4614.46
(=) Excess Retained per Share0.861.191.41
LTM Dividend per Share2.662.662.66
(+) Excess Retained per Share0.861.191.41
(=) Adjusted Dividend3.523.854.07
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.58%1.58%2.58%
Fair Value$41.55$52.00$64.04
Upside / Downside197.62%272.51%358.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)63.5964.5965.6266.6567.7168.7870.85
Payout Ratio60.44%66.35%72.26%78.18%84.09%90.00%92.50%
Projected Dividends (M)38.4342.8647.4252.1156.9461.9065.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.58%1.58%2.58%
Year 1 PV (M)38.9039.2839.67
Year 2 PV (M)39.0639.8440.63
Year 3 PV (M)38.9640.1341.33
Year 4 PV (M)38.6340.1941.80
Year 5 PV (M)38.1240.0542.06
PV of Terminal Value (M)661.77695.33730.23
Equity Value (M)855.43894.82935.72
Shares Outstanding (M)14.4614.4614.46
Fair Value$59.14$61.87$64.69
Upside / Downside323.65%343.16%363.41%

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