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DoubleLine Income Solutions Fund (DSL)

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

Valuation Snapshot

Stable Growth$24.10 - $34.69$29.27
Multi-Stage$40.52 - $44.42$42.43
Blended Fair Value$35.85
Current Price$12.28
Upside191.92%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-4.56%0.00%1.311.211.381.611.311.651.631.691.671.74
YoY Growth--7.96%-12.04%-14.28%23.18%-21.02%1.47%-3.66%1.24%-4.13%0.00%
Dividend Yield--10.66%9.35%11.77%14.90%7.35%10.32%8.18%8.30%7.86%9.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)373.74
(-) Cash Dividends Paid (M)203.70
(=) Cash Retained (M)170.04
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)74.7546.7228.03
Cash Retained (M)170.04170.04170.04
(-) Cash Required (M)-74.75-46.72-28.03
(=) Excess Retained (M)95.30123.33142.01
(/) Shares Outstanding (M)109.74109.74109.74
(=) Excess Retained per Share0.871.121.29
LTM Dividend per Share1.861.861.86
(+) Excess Retained per Share0.871.121.29
(=) Adjusted Dividend2.722.983.15
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$24.10$29.27$34.69
Upside / Downside96.24%138.33%182.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)373.74370.00366.30362.64359.01355.42366.09
Payout Ratio54.50%61.60%68.70%75.80%82.90%90.00%92.50%
Projected Dividends (M)203.70227.93251.66274.88297.62319.88338.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)206.85208.96211.07
Year 2 PV (M)207.25211.50215.80
Year 3 PV (M)205.44211.79218.28
Year 4 PV (M)201.86210.23218.85
Year 5 PV (M)196.89207.14217.81
PV of Terminal Value (M)3,428.083,606.593,792.46
Equity Value (M)4,446.374,656.214,874.26
Shares Outstanding (M)109.74109.74109.74
Fair Value$40.52$42.43$44.42
Upside / Downside229.94%245.51%261.69%

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