Definitive Analysis
Definitive Analysis

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Sector

Nuveen Minnesota Quality Municipal Income Fund (NMS)

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

Valuation Snapshot

Stable Growth$29.36 - $46.04$37.02
Multi-Stage$71.08 - $78.31$74.62
Blended Fair Value$55.82
Current Price$11.38
Upside390.51%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20252024202320222021202020192018
DPS7.71%0.00%0.840.480.520.620.600.580.630.730.000.00
YoY Growth--74.04%-7.06%-16.84%3.12%4.49%-8.01%-14.37%0.00%0.00%0.00%
Dividend Yield--7.37%4.46%4.69%4.03%3.71%4.20%4.57%5.40%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)17.51
(-) Cash Dividends Paid (M)6.48
(=) Cash Retained (M)11.03
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.502.191.31
Cash Retained (M)11.0311.0311.03
(-) Cash Required (M)-3.50-2.19-1.31
(=) Excess Retained (M)7.538.849.72
(/) Shares Outstanding (M)5.795.795.79
(=) Excess Retained per Share1.301.531.68
LTM Dividend per Share1.121.121.12
(+) Excess Retained per Share1.301.531.68
(=) Adjusted Dividend2.422.652.80
WACC / Discount Rate6.08%6.08%6.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$29.36$37.02$46.04
Upside / Downside157.97%225.31%304.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)17.5117.3417.1616.9916.8216.6517.15
Payout Ratio37.02%47.61%58.21%68.81%79.40%90.00%92.50%
Projected Dividends (M)6.488.259.9911.6913.3614.9915.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.08%6.08%6.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)7.707.787.86
Year 2 PV (M)8.708.889.06
Year 3 PV (M)9.509.8010.09
Year 4 PV (M)10.1310.5510.98
Year 5 PV (M)10.6111.1611.73
PV of Terminal Value (M)364.87383.87403.66
Equity Value (M)411.52432.04453.39
Shares Outstanding (M)5.795.795.79
Fair Value$71.08$74.62$78.31
Upside / Downside524.57%555.72%588.12%

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