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Kayne Anderson Energy Infrastructure Fund, Inc. (KYN)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$17.12 - $25.04$20.94
Multi-Stage$29.91 - $32.87$31.36
Blended Fair Value$26.15
Current Price$12.53
Upside108.70%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.07%-3.74%0.980.670.610.490.581.091.161.161.331.54
YoY Growth--46.69%8.85%26.30%-15.63%-47.06%-6.13%0.28%-12.90%-13.98%7.52%
Dividend Yield--7.67%7.29%6.89%5.61%8.18%9.79%7.52%6.64%6.14%10.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)382.61
(-) Cash Dividends Paid (M)135.30
(=) Cash Retained (M)247.31
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)76.5247.8328.70
Cash Retained (M)247.31247.31247.31
(-) Cash Required (M)-76.52-47.83-28.70
(=) Excess Retained (M)170.79199.48218.61
(/) Shares Outstanding (M)169.13169.13169.13
(=) Excess Retained per Share1.011.181.29
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share1.011.181.29
(=) Adjusted Dividend1.811.982.09
WACC / Discount Rate8.36%8.36%8.36%
Growth Rate-2.00%-1.00%0.00%
Fair Value$17.12$20.94$25.04
Upside / Downside36.65%67.12%99.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)382.61378.78374.99371.24367.53363.86374.77
Payout Ratio35.36%46.29%57.22%68.15%79.07%90.00%92.50%
Projected Dividends (M)135.30175.34214.56252.98290.62327.47346.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.36%8.36%8.36%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)160.18161.81163.45
Year 2 PV (M)179.06182.74186.45
Year 3 PV (M)192.88198.84204.93
Year 4 PV (M)202.41210.80219.45
Year 5 PV (M)208.36219.21230.50
PV of Terminal Value (M)4,116.214,330.554,553.73
Equity Value (M)5,059.105,303.955,558.50
Shares Outstanding (M)169.13169.13169.13
Fair Value$29.91$31.36$32.87
Upside / Downside138.73%150.29%162.30%

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