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First Trust Intermediate Duration Preferred & Income Fund (FPF)

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

Valuation Snapshot

Stable Growth$26.50 - $37.13$31.79
Multi-Stage$49.26 - $54.00$51.59
Blended Fair Value$41.69
Current Price$17.62
Upside136.60%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.93%-1.61%1.621.311.501.531.591.701.771.891.952.10
YoY Growth--23.66%-12.66%-1.85%-3.76%-6.47%-3.95%-6.35%-3.01%-7.44%10.29%
Dividend Yield--8.63%9.21%9.15%6.04%7.36%7.05%8.64%7.61%8.59%9.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)265.47
(-) Cash Dividends Paid (M)188.02
(=) Cash Retained (M)77.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)53.0933.1819.91
Cash Retained (M)77.4577.4577.45
(-) Cash Required (M)-53.09-33.18-19.91
(=) Excess Retained (M)24.3544.2657.54
(/) Shares Outstanding (M)60.8560.8560.85
(=) Excess Retained per Share0.400.730.95
LTM Dividend per Share3.093.093.09
(+) Excess Retained per Share0.400.730.95
(=) Adjusted Dividend3.493.824.04
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.61%-2.61%-1.61%
Fair Value$26.50$31.79$37.13
Upside / Downside50.40%80.41%110.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)265.47258.53251.77245.18238.77232.53239.51
Payout Ratio70.83%74.66%78.50%82.33%86.17%90.00%92.50%
Projected Dividends (M)188.02193.02197.63201.86205.74209.28221.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.61%-2.61%-1.61%
Year 1 PV (M)175.13176.95178.77
Year 2 PV (M)162.70166.09169.52
Year 3 PV (M)150.79155.53160.37
Year 4 PV (M)139.45145.32151.39
Year 5 PV (M)128.70135.52142.62
PV of Terminal Value (M)2,240.862,359.542,483.20
Equity Value (M)2,997.633,138.963,285.87
Shares Outstanding (M)60.8560.8560.85
Fair Value$49.26$51.59$54.00
Upside / Downside179.59%192.78%206.48%

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