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Blackstone/GSO Strategic Credit Fund (BGB)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$23.28 - $35.35$28.95
Multi-Stage$35.59 - $38.87$37.20
Blended Fair Value$33.07
Current Price$12.12
Upside172.90%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-6.15%0.00%1.141.120.890.871.131.561.261.341.261.26
YoY Growth--1.97%25.68%1.72%-22.47%-27.96%23.56%-5.88%6.67%0.00%0.00%
Dividend Yield--9.30%9.86%8.39%6.47%9.02%10.87%9.39%8.56%8.21%9.42%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)116.39
(-) Cash Dividends Paid (M)100.94
(=) Cash Retained (M)15.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.2814.558.73
Cash Retained (M)15.4515.4515.45
(-) Cash Required (M)-23.28-14.55-8.73
(=) Excess Retained (M)-7.830.906.72
(/) Shares Outstanding (M)44.6644.6644.66
(=) Excess Retained per Share-0.180.020.15
LTM Dividend per Share2.262.262.26
(+) Excess Retained per Share-0.180.020.15
(=) Adjusted Dividend2.082.282.41
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.12%1.12%2.12%
Fair Value$23.28$28.95$35.35
Upside / Downside92.11%138.86%191.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)116.39117.69119.00120.33121.68123.03126.72
Payout Ratio86.72%87.38%88.03%88.69%89.34%90.00%92.50%
Projected Dividends (M)100.94102.84104.77106.72108.71110.73117.22

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.12%1.12%2.12%
Year 1 PV (M)93.3594.2895.21
Year 2 PV (M)86.3288.0589.80
Year 3 PV (M)79.8182.2384.69
Year 4 PV (M)73.7976.7979.87
Year 5 PV (M)68.2371.7075.32
PV of Terminal Value (M)1,187.931,248.451,311.42
Equity Value (M)1,589.421,661.501,736.31
Shares Outstanding (M)44.6644.6644.66
Fair Value$35.59$37.20$38.87
Upside / Downside193.61%206.93%220.75%

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