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Definitive Analysis

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Page: Dividend Discount Model

John Hancock Preferred Income Fund

Ticker: HPI | Industry: Asset Management - Income | Sector: Financial Services
$16.30 +0.03 (0.18%)
As of: 2026-01-23

Master Data Export


Dividend Discount Models Snapshot

ModelRangeSelected
Stable Growth DDM$6.64 - $7.80$7.24
Multi-Stage DDM$5.35 - $5.98$5.65
Blended Fair Value$6.45
Stock Price$16.48

Dividend History (Last 10 Years)

Metric2025202420232022202120202019201820172016
DPS1.4151.3881.3981.4101.4201.4201.6371.6821.65615.838
YoY %1.90%-0.66%-0.89%-0.69%0.01%-13.27%-2.67%1.55%-89.54%842.75%
Yield8.585%8.425%8.481%8.557%8.616%8.615%9.933%10.206%10.050%96.106%

CAGRValue
5 Year-0.07%
10 Year-1.70%

Discounted Dividend Model - Stable Growth

MetricRangeSelected
LT Growth-20.91% to -18.91%-19.91%
WACC9.00%9.00%
Fair Value$6.64 - $7.80$7.24

Calculation Details (Millions)

MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(*) Adjusted Net Income36.7236.7236.72
(=) Cash Required7.344.592.75
Cash Retained36.7236.7236.72
(-) Cash Required-7.34-4.59-2.75
(=) Excess Retained29.3732.1333.96
(/) Shares Outstanding26,767,16526,767,16526,767,165
(=) Excess Retained per Share1.101.201.27
LTM Dividend per Share1.4151.4151.415
(+) Excess Retained per Share1.101.201.27
(=) Adjusted Dividend2.5122.6152.684

Multi-Stage Projections (BASE Case - Millions)

MetricTTMYear 1Year 2Year 3Year 4Year 5
Net Income36.7229.4123.5518.8615.1112.10
Payout Ratio103.1%25.0%41.0%57.0%73.0%90.0%
Projected Dividends37.877.359.6610.7511.0310.89

Multi-Stage Valuation (Millions)

Present ValuesLOWBASEHIGH
Year 1 PV6.957.047.13
Year 2 PV8.288.498.70
Year 3 PV8.358.679.00
Year 4 PV7.768.168.57
Year 5 PV6.947.397.86
TV PV104.82111.61118.76
Equity Value143.09151.36160.02
Fair Value$5.35$5.65$5.98
Stock Price$16.48$16.48$16.48

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