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BlackRock Limited Duration Income Trust (BLW)

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

Valuation Snapshot

Stable Growth$12.48 - $18.04$15.19
Multi-Stage$21.82 - $23.85$22.82
Blended Fair Value$19.00
Current Price$14.18
Upside34.01%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.98%0.20%1.231.151.121.091.120.920.941.251.281.27
YoY Growth--7.25%2.50%2.11%-2.16%21.75%-1.97%-25.16%-1.87%0.52%5.47%
Dividend Yield--8.69%8.17%8.53%7.64%6.68%5.95%6.23%7.84%8.43%8.82%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)65.09
(-) Cash Dividends Paid (M)60.79
(=) Cash Retained (M)4.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.028.144.88
Cash Retained (M)4.304.304.30
(-) Cash Required (M)-13.02-8.14-4.88
(=) Excess Retained (M)-8.72-3.83-0.58
(/) Shares Outstanding (M)37.6037.6037.60
(=) Excess Retained per Share-0.23-0.10-0.02
LTM Dividend per Share1.621.621.62
(+) Excess Retained per Share-0.23-0.10-0.02
(=) Adjusted Dividend1.381.511.60
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.80%-0.80%0.20%
Fair Value$12.48$15.19$18.04
Upside / Downside-11.97%7.09%27.21%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)65.0964.5764.0563.5463.0462.5464.41
Payout Ratio93.39%92.71%92.03%91.36%90.68%90.00%92.50%
Projected Dividends (M)60.7959.8658.9558.0557.1656.2859.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.80%-0.80%0.20%
Year 1 PV (M)54.3254.8755.42
Year 2 PV (M)48.5449.5350.53
Year 3 PV (M)43.3744.7146.07
Year 4 PV (M)38.7540.3542.00
Year 5 PV (M)34.6236.4238.29
PV of Terminal Value (M)600.95632.18664.69
Equity Value (M)820.54858.06897.01
Shares Outstanding (M)37.6037.6037.60
Fair Value$21.82$22.82$23.85
Upside / Downside53.89%60.92%68.23%

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