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BNY Mellon Municipal Income, Inc. (DMF)

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

Valuation Snapshot

Stable Growth$9.39 - $13.39$11.36
Multi-Stage$15.63 - $17.17$16.39
Blended Fair Value$13.87
Current Price$7.31
Upside89.78%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-14.48%-11.19%0.190.000.350.380.420.420.440.490.530.63
YoY Growth--0.00%-100.00%-7.93%-8.18%-0.45%-5.41%-9.76%-6.78%-16.11%0.02%
Dividend Yield--2.63%0.00%5.88%3.98%4.84%4.49%5.67%5.39%5.49%6.65%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)28.99
(-) Cash Dividends Paid (M)8.59
(=) Cash Retained (M)20.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.803.622.17
Cash Retained (M)20.4020.4020.40
(-) Cash Required (M)-5.80-3.62-2.17
(=) Excess Retained (M)14.6016.7818.23
(/) Shares Outstanding (M)20.7620.7620.76
(=) Excess Retained per Share0.700.810.88
LTM Dividend per Share0.410.410.41
(+) Excess Retained per Share0.700.810.88
(=) Adjusted Dividend1.121.221.29
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.50%-1.50%-0.50%
Fair Value$9.39$11.36$13.39
Upside / Downside28.51%55.40%83.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)28.9928.5628.1327.7127.2926.8827.69
Payout Ratio29.64%41.71%53.78%65.86%77.93%90.00%92.50%
Projected Dividends (M)8.5911.9115.1318.2521.2724.2025.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.50%-1.50%-0.50%
Year 1 PV (M)10.8110.9211.03
Year 2 PV (M)12.4512.7112.97
Year 3 PV (M)13.6314.0514.49
Year 4 PV (M)14.4115.0115.63
Year 5 PV (M)14.8815.6616.47
PV of Terminal Value (M)258.26271.78285.85
Equity Value (M)324.44340.13356.44
Shares Outstanding (M)20.7620.7620.76
Fair Value$15.63$16.39$17.17
Upside / Downside113.82%124.16%134.91%

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