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The Hartford Dividend and Growth Fund Class C (HDGCX)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$49.64 - $76.59$62.16
Multi-Stage$67.09 - $73.59$70.28
Blended Fair Value$66.22
Current Price$33.37
Upside98.44%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2023202220212020201920182017201620152014
DPS0.00%9.43%1.061.020.980.930.880.000.660.650.610.55
YoY Growth--4.17%4.15%5.86%5.29%0.00%-100.00%2.10%5.70%12.06%26.46%
Dividend Yield--3.19%3.64%3.04%3.18%4.47%0.00%2.77%2.63%2.79%2.23%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,701.00
(-) Cash Dividends Paid (M)556.00
(=) Cash Retained (M)2,145.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)540.20337.63202.58
Cash Retained (M)2,145.002,145.002,145.00
(-) Cash Required (M)-540.20-337.63-202.58
(=) Excess Retained (M)1,604.801,807.381,942.43
(/) Shares Outstanding (M)516.18516.18516.18
(=) Excess Retained per Share3.113.503.76
LTM Dividend per Share1.081.081.08
(+) Excess Retained per Share3.113.503.76
(=) Adjusted Dividend4.194.584.84
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.60%1.60%2.60%
Fair Value$49.64$62.16$76.59
Upside / Downside48.75%86.27%129.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,701.002,744.122,787.932,832.452,877.672,923.613,011.32
Payout Ratio20.58%34.47%48.35%62.23%76.12%90.00%92.50%
Projected Dividends (M)556.00945.841,347.991,762.742,190.392,631.252,785.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.60%1.60%2.60%
Year 1 PV (M)858.58867.11875.64
Year 2 PV (M)1,110.721,132.921,155.33
Year 3 PV (M)1,318.461,358.171,398.67
Year 4 PV (M)1,487.161,547.181,609.00
Year 5 PV (M)1,621.651,703.871,789.39
PV of Terminal Value (M)28,235.1429,666.7131,155.76
Equity Value (M)34,631.7136,275.9637,983.80
Shares Outstanding (M)516.18516.18516.18
Fair Value$67.09$70.28$73.59
Upside / Downside101.06%110.60%120.52%

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