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Flaherty & Crumrine Preferred Income Fund Inc. (PFD)

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

Valuation Snapshot

Stable Growth$18.26 - $25.68$21.95
Multi-Stage$32.53 - $35.71$34.09
Blended Fair Value$28.02
Current Price$11.03
Upside154.02%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.36%-3.23%0.690.680.840.840.770.740.790.830.870.88
YoY Growth--1.36%-18.42%-0.96%8.84%4.79%-6.90%-4.05%-5.16%-1.16%-7.93%
Dividend Yield--6.06%6.94%7.37%4.90%4.10%4.54%6.58%5.34%6.55%6.68%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)37.75
(-) Cash Dividends Paid (M)18.32
(=) Cash Retained (M)19.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.554.722.83
Cash Retained (M)19.4419.4419.44
(-) Cash Required (M)-7.55-4.72-2.83
(=) Excess Retained (M)11.8914.7216.61
(/) Shares Outstanding (M)12.8512.8512.85
(=) Excess Retained per Share0.921.151.29
LTM Dividend per Share1.431.431.43
(+) Excess Retained per Share0.921.151.29
(=) Adjusted Dividend2.352.572.72
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.36%-2.36%-1.36%
Fair Value$18.26$21.95$25.68
Upside / Downside65.57%98.96%132.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)37.7536.8636.0035.1534.3233.5134.52
Payout Ratio48.51%56.81%65.11%73.41%81.70%90.00%92.50%
Projected Dividends (M)18.3220.9423.4425.8028.0430.1631.93

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.36%-2.36%-1.36%
Year 1 PV (M)19.0019.2019.40
Year 2 PV (M)19.3019.7020.10
Year 3 PV (M)19.2719.8820.50
Year 4 PV (M)19.0119.8120.63
Year 5 PV (M)18.5519.5320.55
PV of Terminal Value (M)322.99340.05357.82
Equity Value (M)418.12438.16459.00
Shares Outstanding (M)12.8512.8512.85
Fair Value$32.53$34.09$35.71
Upside / Downside194.94%209.08%223.78%

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