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The Hartford Dividend and Growth Fund Class C (HDGCX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$49.53 - $76.38$62.01
Multi-Stage$66.88 - $73.35$70.05
Blended Fair Value$66.03
Current Price$33.37
Upside97.88%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%9.43%1.061.020.980.930.880.000.660.650.610.55
YoY Growth--4.17%4.15%5.86%5.29%0.00%-100.00%2.10%5.70%12.06%26.46%
Dividend Yield--3.19%3.64%3.04%3.18%4.47%0.00%2.77%2.63%2.79%2.23%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,701.00
(-) Cash Dividends Paid (M)556.00
(=) Cash Retained (M)2,145.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)540.20337.63202.58
Cash Retained (M)2,145.002,145.002,145.00
(-) Cash Required (M)-540.20-337.63-202.58
(=) Excess Retained (M)1,604.801,807.381,942.43
(/) Shares Outstanding (M)516.18516.18516.18
(=) Excess Retained per Share3.113.503.76
LTM Dividend per Share1.081.081.08
(+) Excess Retained per Share3.113.503.76
(=) Adjusted Dividend4.194.584.84
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.60%1.60%2.60%
Fair Value$49.53$62.01$76.38
Upside / Downside48.44%85.83%128.89%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,701.002,744.122,787.932,832.452,877.672,923.613,011.32
Payout Ratio20.58%34.47%48.35%62.23%76.12%90.00%92.50%
Projected Dividends (M)556.00945.841,347.991,762.742,190.392,631.252,785.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.60%1.60%2.60%
Year 1 PV (M)858.43866.97875.50
Year 2 PV (M)1,110.361,132.541,154.95
Year 3 PV (M)1,317.811,357.501,397.98
Year 4 PV (M)1,486.181,546.161,607.94
Year 5 PV (M)1,620.311,702.471,787.92
PV of Terminal Value (M)28,128.5829,554.7531,038.18
Equity Value (M)34,521.6736,160.3837,862.46
Shares Outstanding (M)516.18516.18516.18
Fair Value$66.88$70.05$73.35
Upside / Downside100.42%109.93%119.81%

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