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PIMCO High Income Fund (PHK)

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

Valuation Snapshot

Stable Growth$8.26 - $11.90$10.04
Multi-Stage$14.50 - $15.86$15.17
Blended Fair Value$12.60
Current Price$4.80
Upside162.55%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.09%-6.58%0.520.490.430.380.410.510.640.690.790.00
YoY Growth--4.60%14.61%13.01%-8.01%-19.41%-20.17%-6.17%-13.44%0.00%-100.00%
Dividend Yield--10.77%10.25%8.63%7.38%5.97%9.94%8.03%7.93%9.11%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)193.98
(-) Cash Dividends Paid (M)168.01
(=) Cash Retained (M)25.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)38.8024.2514.55
Cash Retained (M)25.9725.9725.97
(-) Cash Required (M)-38.80-24.25-14.55
(=) Excess Retained (M)-12.831.7211.42
(/) Shares Outstanding (M)166.12166.12166.12
(=) Excess Retained per Share-0.080.010.07
LTM Dividend per Share1.011.011.01
(+) Excess Retained per Share-0.080.010.07
(=) Adjusted Dividend0.931.021.08
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$8.26$10.04$11.90
Upside / Downside72.14%109.07%147.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)193.98192.04190.12188.22186.34184.48190.01
Payout Ratio86.61%87.29%87.97%88.64%89.32%90.00%92.50%
Projected Dividends (M)168.01167.63167.25166.85166.44166.03175.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)152.13153.68155.23
Year 2 PV (M)137.74140.56143.41
Year 3 PV (M)124.70128.55132.49
Year 4 PV (M)112.89117.57122.39
Year 5 PV (M)102.19107.51113.05
PV of Terminal Value (M)1,779.281,871.931,968.40
Equity Value (M)2,408.922,519.802,634.98
Shares Outstanding (M)166.12166.12166.12
Fair Value$14.50$15.17$15.86
Upside / Downside202.11%216.02%230.46%

High-Yield Dividend Screener

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