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Definitive Analysis

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PIMCO Income Strategy Fund II (PFN)

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

Valuation Snapshot

Stable Growth$18.48 - $27.92$22.93
Multi-Stage$38.68 - $42.48$40.54
Blended Fair Value$31.73
Current Price$7.39
Upside329.42%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.74%0.00%0.780.740.690.610.700.650.000.000.000.00
YoY Growth--5.14%7.34%12.35%-12.24%7.96%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--10.51%10.30%9.54%7.73%6.34%7.28%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)195.46
(-) Cash Dividends Paid (M)142.40
(=) Cash Retained (M)53.07
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.0924.4314.66
Cash Retained (M)53.0753.0753.07
(-) Cash Required (M)-39.09-24.43-14.66
(=) Excess Retained (M)13.9828.6438.41
(/) Shares Outstanding (M)90.9190.9190.91
(=) Excess Retained per Share0.150.310.42
LTM Dividend per Share1.571.571.57
(+) Excess Retained per Share0.150.310.42
(=) Adjusted Dividend1.721.881.99
WACC / Discount Rate7.12%7.12%7.12%
Growth Rate-2.00%-1.00%0.00%
Fair Value$18.48$22.93$27.92
Upside / Downside150.00%210.23%277.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)195.46193.51191.57189.66187.76185.88191.46
Payout Ratio72.85%76.28%79.71%83.14%86.57%90.00%92.50%
Projected Dividends (M)142.40147.61152.70157.68162.54167.30177.10

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.12%7.12%7.12%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)136.40137.79139.18
Year 2 PV (M)130.39133.07135.77
Year 3 PV (M)124.42128.27132.20
Year 4 PV (M)118.52123.43128.50
Year 5 PV (M)112.72118.59124.71
PV of Terminal Value (M)2,893.953,044.643,201.55
Equity Value (M)3,516.413,685.803,861.91
Shares Outstanding (M)90.9190.9190.91
Fair Value$38.68$40.54$42.48
Upside / Downside423.38%448.60%474.81%

High-Yield Dividend Screener

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