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Barings Participation Investors (MPV)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$32.22 - $51.26$40.88
Multi-Stage$44.79 - $48.86$46.79
Blended Fair Value$43.83
Current Price$20.11
Upside117.97%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.23%3.35%1.441.170.810.790.861.071.061.051.051.04
YoY Growth--23.23%43.90%2.50%-8.01%-19.09%0.63%0.68%0.62%0.36%0.44%
Dividend Yield--8.45%7.51%6.61%5.37%7.27%6.62%7.05%7.34%7.38%7.59%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)32.78
(-) Cash Dividends Paid (M)31.39
(=) Cash Retained (M)1.38
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.564.102.46
Cash Retained (M)1.381.381.38
(-) Cash Required (M)-6.56-4.10-2.46
(=) Excess Retained (M)-5.17-2.71-1.07
(/) Shares Outstanding (M)10.6710.6710.67
(=) Excess Retained per Share-0.48-0.25-0.10
LTM Dividend per Share2.942.942.94
(+) Excess Retained per Share-0.48-0.25-0.10
(=) Adjusted Dividend2.462.692.84
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.35%2.35%3.35%
Fair Value$32.22$40.88$51.26
Upside / Downside60.23%103.28%154.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)32.7833.5534.3435.1435.9736.8237.92
Payout Ratio95.78%94.62%93.47%92.31%91.16%90.00%92.50%
Projected Dividends (M)31.3931.7432.0932.4432.7933.1335.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.35%2.35%3.35%
Year 1 PV (M)28.8229.1029.39
Year 2 PV (M)26.4526.9727.50
Year 3 PV (M)24.2725.0025.74
Year 4 PV (M)22.2723.1624.08
Year 5 PV (M)20.4321.4622.53
PV of Terminal Value (M)355.69373.58392.19
Equity Value (M)477.92499.27521.42
Shares Outstanding (M)10.6710.6710.67
Fair Value$44.79$46.79$48.86
Upside / Downside122.71%132.66%142.98%

High-Yield Dividend Screener

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ARCCAres Capital Corporation8.61%$1.7691.56%
TPVGTriplePoint Venture Growth BDC Corp.8.52%$0.5767.26%
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TSLXSixth Street Specialty Lending, Inc.8.00%$1.7385.26%
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HWCPZHancock Whitney Corporation - 67.58%$1.7731.35%
WRB-PGW.R. Berkley Corporation 4.25%7.54%$1.2726.69%
NMTNuveen Massachusetts Quality Municipal Income Fund7.48%$0.8580.62%
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JMMNuveen Multi-Market Income Fund7.28%$0.4461.06%
BKEThe Buckle, Inc.7.26%$3.9196.21%
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PMFPIMCO Municipal Income Fund7.07%$0.5992.59%
RYNRayonier Inc.7.04%$1.5230.67%
DRQDril-Quip, Inc.7.02%$1.0850.37%
TRINITrinity Capital Inc. 7.875% Notes Due 20297.02%$1.7883.48%
C-PNCitigroup Capital XIII TR PFD SECS7.01%$2.1326.99%
VPVInvesco Pennsylvania Value Municipal Income Trust6.98%$0.7360.22%
VCVInvesco California Value Municipal Income Trust6.97%$0.7860.58%
EOTEaton Vance National Municipal Opportunities Trust6.96%$1.1869.84%
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EGYVAALCO Energy, Inc.6.91%$0.2592.67%
NOMNuveen Missouri Quality Municipal Income Fund6.91%$0.8278.81%
UBCPUnited Bancorp, Inc.6.90%$0.9996.30%
TBCAT&T Inc. 5.625% Global Notes d6.89%$1.7255.65%
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