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Madison Dividend Income Fd Cl Y (BHBFX)

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

Valuation Snapshot

Stable Growth$150.28 - $216.36$182.51
Multi-Stage$247.74 - $271.86$259.57
Blended Fair Value$221.04
Current Price$26.16
Upside744.96%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%3.954.304.224.220.000.000.000.000.000.00
YoY Growth---8.26%1.93%-0.07%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--15.61%16.02%15.10%13.05%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)627.37
(-) Cash Dividends Paid (M)252.32
(=) Cash Retained (M)375.05
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)125.4778.4247.05
Cash Retained (M)375.05375.05375.05
(-) Cash Required (M)-125.47-78.42-47.05
(=) Excess Retained (M)249.58296.63328.00
(/) Shares Outstanding (M)29.5429.5429.54
(=) Excess Retained per Share8.4510.0411.10
LTM Dividend per Share8.548.548.54
(+) Excess Retained per Share8.4510.0411.10
(=) Adjusted Dividend16.9918.5819.65
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$150.28$182.51$216.36
Upside / Downside474.45%597.68%727.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)627.37621.10614.88608.74602.65596.62614.52
Payout Ratio40.22%50.17%60.13%70.09%80.04%90.00%92.50%
Projected Dividends (M)252.32311.63369.74426.65482.38536.96568.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)282.81285.69288.58
Year 2 PV (M)304.50310.74317.05
Year 3 PV (M)318.86328.73338.79
Year 4 PV (M)327.17340.73354.71
Year 5 PV (M)330.50347.71365.63
PV of Terminal Value (M)5,754.446,054.096,366.09
Equity Value (M)7,318.287,667.698,030.84
Shares Outstanding (M)29.5429.5429.54
Fair Value$247.74$259.57$271.86
Upside / Downside847.03%892.24%939.24%

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