Definitive Analysis
Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Miller/Howard High Income Equity Fund (HIE)

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

Valuation Snapshot

Stable Growth$9.39 - $13.75$11.49
Multi-Stage$17.78 - $19.46$18.61
Blended Fair Value$15.05
Current Price$10.94
Upside37.55%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017
DPS-9.83%0.00%0.610.580.600.801.201.030.990.000.000.00
YoY Growth--5.70%-3.50%-24.98%-33.37%16.88%3.77%0.00%0.00%0.00%0.00%
Dividend Yield--6.38%5.72%5.74%13.37%10.18%9.27%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23.03
(-) Cash Dividends Paid (M)22.60
(=) Cash Retained (M)0.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.612.881.73
Cash Retained (M)0.440.440.44
(-) Cash Required (M)-4.61-2.88-1.73
(=) Excess Retained (M)-4.17-2.44-1.29
(/) Shares Outstanding (M)18.6918.6918.69
(=) Excess Retained per Share-0.22-0.13-0.07
LTM Dividend per Share1.211.211.21
(+) Excess Retained per Share-0.22-0.13-0.07
(=) Adjusted Dividend0.991.081.14
WACC / Discount Rate8.29%8.29%8.29%
Growth Rate-2.00%-1.00%0.00%
Fair Value$9.39$11.49$13.75
Upside / Downside-14.19%5.02%25.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23.0322.8022.5822.3522.1321.9022.56
Payout Ratio98.11%96.48%94.86%93.24%91.62%90.00%92.50%
Projected Dividends (M)22.6022.0021.4220.8420.2719.7120.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.29%8.29%8.29%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)20.1120.3220.52
Year 2 PV (M)17.8918.2618.63
Year 3 PV (M)15.9216.4116.91
Year 4 PV (M)14.1514.7415.35
Year 5 PV (M)12.5813.2413.92
PV of Terminal Value (M)251.72264.82278.47
Equity Value (M)332.38347.79363.80
Shares Outstanding (M)18.6918.6918.69
Fair Value$17.78$18.61$19.46
Upside / Downside62.55%70.09%77.92%

High-Yield Dividend Screener

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