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PIMCO Corporate & Income Strategy Fund (PCN)

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

Valuation Snapshot

Stable Growth$17.35 - $24.97$21.06
Multi-Stage$29.70 - $32.53$31.09
Blended Fair Value$26.08
Current Price$12.69
Upside105.48%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.79%0.00%1.211.031.000.000.810.830.850.801.040.00
YoY Growth--18.27%2.66%0.00%-100.00%-2.80%-1.88%6.55%-23.16%0.00%0.00%
Dividend Yield--9.57%7.75%7.63%0.00%4.29%5.46%4.71%4.41%5.80%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)150.64
(-) Cash Dividends Paid (M)103.86
(=) Cash Retained (M)46.77
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)30.1318.8311.30
Cash Retained (M)46.7746.7746.77
(-) Cash Required (M)-30.13-18.83-11.30
(=) Excess Retained (M)16.6427.9435.47
(/) Shares Outstanding (M)61.3561.3561.35
(=) Excess Retained per Share0.270.460.58
LTM Dividend per Share1.691.691.69
(+) Excess Retained per Share0.270.460.58
(=) Adjusted Dividend1.962.152.27
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$17.35$21.06$24.97
Upside / Downside36.69%65.99%96.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)150.64149.13147.64146.16144.70143.25147.55
Payout Ratio68.95%73.16%77.37%81.58%85.79%90.00%92.50%
Projected Dividends (M)103.86109.10114.23119.24124.14128.93136.48

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)98.99100.00101.01
Year 2 PV (M)94.0495.9797.92
Year 3 PV (M)89.0791.8394.64
Year 4 PV (M)84.1487.6391.22
Year 5 PV (M)79.2983.4287.72
PV of Terminal Value (M)1,376.471,448.141,522.77
Equity Value (M)1,822.001,906.991,995.28
Shares Outstanding (M)61.3561.3561.35
Fair Value$29.70$31.09$32.53
Upside / Downside134.05%144.96%156.31%

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