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Nuveen Taxable Municipal Income Fund (NBB)

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

Valuation Snapshot

Stable Growth$16.62 - $23.92$20.18
Multi-Stage$29.10 - $31.84$30.44
Blended Fair Value$25.31
Current Price$16.22
Upside56.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.26%0.00%1.091.321.161.191.021.101.191.111.161.22
YoY Growth---17.34%13.72%-2.59%16.31%-7.33%-7.07%6.83%-4.39%-4.49%0.00%
Dividend Yield--6.80%8.66%7.19%5.96%4.53%5.77%5.78%5.35%5.57%5.64%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)69.03
(-) Cash Dividends Paid (M)58.70
(=) Cash Retained (M)10.32
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.818.635.18
Cash Retained (M)10.3210.3210.32
(-) Cash Required (M)-13.81-8.63-5.18
(=) Excess Retained (M)-3.481.705.15
(/) Shares Outstanding (M)29.3929.3929.39
(=) Excess Retained per Share-0.120.060.18
LTM Dividend per Share2.002.002.00
(+) Excess Retained per Share-0.120.060.18
(=) Adjusted Dividend1.882.052.17
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$16.62$20.18$23.92
Upside / Downside2.44%24.42%47.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)69.0368.3467.6566.9866.3165.6567.61
Payout Ratio85.04%86.03%87.03%88.02%89.01%90.00%92.50%
Projected Dividends (M)58.7058.7958.8858.9559.0259.0862.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)53.3653.9054.44
Year 2 PV (M)48.4949.4850.49
Year 3 PV (M)44.0645.4246.81
Year 4 PV (M)40.0341.6943.40
Year 5 PV (M)36.3638.2640.23
PV of Terminal Value (M)633.15666.12700.45
Equity Value (M)855.45894.87935.82
Shares Outstanding (M)29.3929.3929.39
Fair Value$29.10$30.44$31.84
Upside / Downside79.42%87.69%96.28%

High-Yield Dividend Screener

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PMFPIMCO Municipal Income Fund7.07%$0.5992.59%
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C-PNCitigroup Capital XIII TR PFD SECS7.01%$2.1326.99%
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