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Cohen & Steers Limited Duration Preferred and Income Fund, Inc. (LDP)

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

Valuation Snapshot

Stable Growth$30.56 - $41.96$36.32
Multi-Stage$58.81 - $64.61$61.65
Blended Fair Value$48.99
Current Price$20.98
Upside133.50%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-3.18%-1.81%1.571.601.971.611.741.851.941.871.862.15
YoY Growth---1.52%-19.02%22.69%-7.64%-5.85%-4.83%4.13%0.49%-13.67%13.95%
Dividend Yield--7.79%8.67%10.37%6.07%6.54%7.05%8.91%7.16%7.57%9.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)167.30
(-) Cash Dividends Paid (M)91.49
(=) Cash Retained (M)75.81
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)33.4620.9112.55
Cash Retained (M)75.8175.8175.81
(-) Cash Required (M)-33.46-20.91-12.55
(=) Excess Retained (M)42.3554.9063.26
(/) Shares Outstanding (M)29.0829.0829.08
(=) Excess Retained per Share1.461.892.18
LTM Dividend per Share3.153.153.15
(+) Excess Retained per Share1.461.892.18
(=) Adjusted Dividend4.605.035.32
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-5.18%-4.18%-3.18%
Fair Value$30.56$36.32$41.96
Upside / Downside45.68%73.14%100.00%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)167.30160.30153.60147.18141.03135.13139.18
Payout Ratio54.69%61.75%68.81%75.87%82.94%90.00%92.50%
Projected Dividends (M)91.4998.99105.70111.67116.96121.62128.74

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-5.18%-4.18%-3.18%
Year 1 PV (M)89.7890.7391.68
Year 2 PV (M)86.9688.8090.67
Year 3 PV (M)83.3386.0088.72
Year 4 PV (M)79.1782.5686.06
Year 5 PV (M)74.6778.6982.88
PV of Terminal Value (M)1,296.211,366.011,438.80
Equity Value (M)1,710.121,792.801,878.81
Shares Outstanding (M)29.0829.0829.08
Fair Value$58.81$61.65$64.61
Upside / Downside180.31%193.86%207.96%

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