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 fifth of five industrials sector stocks this week striving to become the seventh of eight from that sector to join the Ivy folio.

That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a mid-cap tools & accessories company named Kennametal Inc. Their trading ticker symbol is KMT. I last reported on Kennametal Inc August 22, 2018.

Kennametal Inc is a manufacturer of metalworking tools and wear-resistant engineered components and coatings.

The company operates two business segments: industrial and infrastructure.

The industrial segment offers technology and customized solutions used in the manufacture of engines, airframes, automobiles, trucks, ships and other types of industrial equipment.

In the infrastructure segment, Kennametal offers products and solutions such as road milling, trenching, surface mining, and underground mining safety used in the oil and gas, power generation and chemicals, underground and surface mining, and highway construction and road maintenance industries.

The largest end market for Kennemetal is the United States.

Kennametal Inc. was founded in 1938 and is based in Pittsburgh, Pennsylvania.

I use three key data points to gauge dividend-paying equities or funds like Kennametal Inc:

(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.

KMT Price

Kennametal's price per share closed at $31.40  yesterday. A year ago its price was $38.83. Price fell  $7.43 or 19% in the past year.

Assuming Kennametal's stock trades in the range of $20.00 to $40.00 this year, Kennametal's recent $31.40 price could rise by $2.60 and go to $34.00 by August, 2020.

KMT Dividends

Kennametal''s most recent quarterly dividend is $0.20 payable August 27th

That $0.20 Q payout plus the previous dividend payouts equates to an annual dividend of $0.80 generating a yield of 2.55% based on yesterday's $31.40 closing price.

Gains For KMT?

Adding the $0.80 annual estimated dividend to my $2.40 estimate of Kennametal's price upside shows a $3.20 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 $31.40 recent stock price, we'd buy 32 Kennametal Inc shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.31 per share.

Subtract that $0.31 brokerage cost from the estimated $3.20 gross annual gain leaves a net gain of $2.89 X 32 shares = $92.48 or a 9.24% net gain on a $1,004.80 investment.

Therefore, Kennametal Inc whose trading ticker symbol is KMT now shows a possible net gain of 9.24% including a 2.55% dividend yield.

Thirteen brokers track Kennametal Inc stock:

Four say "buy" KMT

One says KMT will "Outperform" peers.

Five say "hold" KMT

Two say KMT will "Underperform" peers,

One says "sell" KMT

Their 2.6 consensus score equates to "Hold"

Now we can look at Kennametal Inc and see it has made money, is making money, and could net a 9.24% gain including a 2.55% 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 Kennametal Inc is worth your time and money.