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The New America High Income Fund Inc. (HYB)

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

Valuation Snapshot

Stable Growth$5.54 - $7.72$6.63
Multi-Stage$10.32 - $11.32$10.81
Blended Fair Value$8.72
Current Price$7.33
Upside18.92%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS-5.70%-6.31%0.280.390.370.350.390.380.430.430.480.49
YoY Growth---27.37%5.88%3.65%-10.28%4.27%-12.86%0.57%-10.01%-2.70%-8.91%
Dividend Yield--3.99%5.87%3.92%4.06%4.31%4.99%4.60%4.65%6.24%5.50%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)38.31
(-) Cash Dividends Paid (M)24.30
(=) Cash Retained (M)14.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.664.792.87
Cash Retained (M)14.0214.0214.02
(-) Cash Required (M)-7.66-4.79-2.87
(=) Excess Retained (M)6.359.2311.14
(/) Shares Outstanding (M)40.9140.9140.91
(=) Excess Retained per Share0.160.230.27
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share0.160.230.27
(=) Adjusted Dividend0.750.820.87
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.92%-2.92%-1.92%
Fair Value$5.54$6.63$7.72
Upside / Downside-24.48%-9.59%5.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)38.3137.1936.1035.0534.0233.0334.02
Payout Ratio63.42%68.74%74.05%79.37%84.68%90.00%92.50%
Projected Dividends (M)24.3025.5626.7427.8228.8129.7231.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.92%-2.92%-1.92%
Year 1 PV (M)23.1923.4423.68
Year 2 PV (M)22.0122.4722.93
Year 3 PV (M)20.7821.4322.10
Year 4 PV (M)19.5320.3521.20
Year 5 PV (M)18.2819.2520.26
PV of Terminal Value (M)318.23335.14352.76
Equity Value (M)422.01442.08462.94
Shares Outstanding (M)40.9140.9140.91
Fair Value$10.32$10.81$11.32
Upside / Downside40.75%47.44%54.39%

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