Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Invesco High Income 2024 Target Term Fund (IHTA)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$29.63 - $47.27$37.64
Multi-Stage$78.04 - $86.06$81.97
Blended Fair Value$59.81
Current Price$7.50
Upside697.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018
DPS-6.77%0.00%0.400.430.510.570.560.560.090.000.000.00
YoY Growth---6.97%-15.92%-10.94%1.87%-0.73%502.62%0.00%0.00%0.00%0.00%
Dividend Yield--5.24%5.29%5.57%6.04%5.40%5.86%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)25.51
(-) Cash Dividends Paid (M)6.84
(=) Cash Retained (M)18.67
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)5.103.191.91
Cash Retained (M)18.6718.6718.67
(-) Cash Required (M)-5.10-3.19-1.91
(=) Excess Retained (M)13.5715.4816.76
(/) Shares Outstanding (M)8.798.798.79
(=) Excess Retained per Share1.541.761.91
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share1.541.761.91
(=) Adjusted Dividend2.322.542.69
WACC / Discount Rate5.68%5.68%5.68%
Growth Rate-2.00%-1.00%0.00%
Fair Value$29.63$37.64$47.27
Upside / Downside295.13%401.92%530.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)25.5125.2625.0124.7624.5124.2624.99
Payout Ratio26.82%39.45%52.09%64.73%77.36%90.00%92.50%
Projected Dividends (M)6.849.9713.0316.0218.9621.8423.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.68%5.68%5.68%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)9.339.439.52
Year 2 PV (M)11.4311.6611.90
Year 3 PV (M)13.1713.5813.99
Year 4 PV (M)14.5915.2015.82
Year 5 PV (M)15.7416.5617.42
PV of Terminal Value (M)621.46653.82687.52
Equity Value (M)685.73720.25756.17
Shares Outstanding (M)8.798.798.79
Fair Value$78.04$81.97$86.06
Upside / Downside940.59%992.98%1,047.49%

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