A portfolio of stocks I'm building, named Ivy, holds 52 dividend dogs. Ivy is the fourth portfolio I've built (at a one dividend dog per week pace) since 2014. Four portfolios = IV!

Today I'm reviewing the first of five materials sector stocks this week striving to become the eighth of nine from that sector to join the Ivy folio.

That materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; steel; paper; silver; specialty chemicals; gold.

Today I'm reviewing a small-cap specialty chemicals company named Hawkins Inc. Their trading ticker symbol is HWKN.

Hawkins Inc manufactures and sells a variety of chemicals and ingredients. The firm organizes itself into three segments based on the product type.

The industrial segment, which generates the majority of revenue, sells private label bleach, caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia.

The water treatment segment sells chemicals and equipment used to treat potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water.

The health and nutrition segment sells ingredients to food, beverage, personal care, and dietary supplement producers. The vast majority of revenue comes from the United States.

The company was founded in 1938 and is headquartered in Roseville, Minnesota.

I use three key data points to gauge dividend-paying equities or funds like Hawkins Inc (HWKN):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

HWKN Price

Hawkins's price per share closed at $44.10  Friday. A year ago its price was $38.40. Price rose  $5.70 or 14.8% in the past year.

Assuming Hawkins's stock trades in the range of $35.00 to $55.00 this year, Hawkins's recent $44.10 price could rise by $4.10 and go to $49.00 by August 2020.

HWKN Dividends

Hawkins's most recent quarterly dividend is $0.23 payable August 30th

That $0.23 Q payout plus the previous dividend payouts equates to an annual dividend of $0.92 generating a yield of 2.09% based on Friday's $44.10 closing price.

Gains For HWKN?

Adding the $0.92 annual estimated dividend to my $4.90 estimate of Hawkins's price upside shows a $5.82 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little over $1,000.00 today at the $44.10 recent stock price, we'd buy 23 Hawkins Inc (HWKN) shares.

A $10 broker fee paid half at purchase and half at a sale will cost us $0.43 per share.

Subtract that $0.43 brokerage cost from the estimated $5.82 gross annual gain leaves a net gain of $5.39 X 23 shares = $123.97 or a 12.38% net gain on a $1,014.30 investment.

Therefore, Hawkins Inc whose trading ticker symbol is HWKN now shows a possible net gain of 12.38% including a 2.09% dividend yield.

No brokers track Hawkins Inc (HWKN) stock:

My price upside is bast on last year's gain.

My consensus score equates to "Hold"

Now we can look at Hawkins Inc (HWKN) and see it has made money, is making money, and could net a 12.38% gain including a 2.09% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Hawkins Inc (HWKN) is worth your time and money.