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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$35.60 - $50.23$42.85
Multi-Stage$88.24 - $97.25$92.66
Blended Fair Value$67.75
Current Price$20.98
Upside222.93%
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 Rate7.08%7.08%7.08%
Growth Rate-5.18%-4.18%-3.18%
Fair Value$35.60$42.85$50.23
Upside / Downside69.69%104.22%139.41%

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 Rate7.08%7.08%7.08%
Growth Rate-5.18%-4.18%-3.18%
Year 1 PV (M)91.4892.4493.41
Year 2 PV (M)90.2792.1994.12
Year 3 PV (M)88.1490.9693.84
Year 4 PV (M)85.3288.9792.75
Year 5 PV (M)81.9886.4091.00
PV of Terminal Value (M)2,128.792,243.442,362.98
Equity Value (M)2,565.992,694.412,828.10
Shares Outstanding (M)29.0829.0829.08
Fair Value$88.24$92.66$97.25
Upside / Downside320.60%341.65%363.56%

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