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BlackRock Enhanced International Dividend Trust (BGY)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$5.66 - $8.00$6.82
Multi-Stage$10.70 - $11.70$11.19
Blended Fair Value$9.00
Current Price$5.79
Upside55.47%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.11%-5.78%0.430.430.440.440.440.450.500.520.600.67
YoY Growth---0.56%-1.85%-0.44%-0.75%-1.93%-10.12%-3.13%-13.22%-11.13%-13.18%
Dividend Yield--8.01%8.12%8.68%6.97%7.51%7.63%10.05%7.86%10.80%10.73%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)86.04
(-) Cash Dividends Paid (M)85.36
(=) Cash Retained (M)0.68
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.2110.766.45
Cash Retained (M)0.680.680.68
(-) Cash Required (M)-17.21-10.76-6.45
(=) Excess Retained (M)-16.53-10.07-5.77
(/) Shares Outstanding (M)96.6296.6296.62
(=) Excess Retained per Share-0.17-0.10-0.06
LTM Dividend per Share0.880.880.88
(+) Excess Retained per Share-0.17-0.10-0.06
(=) Adjusted Dividend0.710.780.82
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.11%-2.11%-1.11%
Fair Value$5.66$6.82$8.00
Upside / Downside-2.19%17.74%38.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)86.0484.2382.4580.7179.0177.3579.67
Payout Ratio99.21%97.37%95.52%93.68%91.84%90.00%92.50%
Projected Dividends (M)85.3682.0178.7675.6272.5769.6173.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-3.11%-2.11%-1.11%
Year 1 PV (M)74.4275.1875.95
Year 2 PV (M)64.8566.2067.56
Year 3 PV (M)56.4958.2660.06
Year 4 PV (M)49.1951.2653.38
Year 5 PV (M)42.8245.0847.43
PV of Terminal Value (M)745.57784.85825.77
Equity Value (M)1,033.351,080.831,130.15
Shares Outstanding (M)96.6296.6296.62
Fair Value$10.70$11.19$11.70
Upside / Downside84.72%93.20%102.02%

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