Daily Stock Analysis: Donegal Group (DGICA)

Donegal Group Inc is known by the trading ticker symbol DGICA. It is in included in the Financial Services sector as a Property & Casualty Insurance company. This is my first report on Donegal for my Vista stock Portfolio.

Donegal Group Inc is an insurance holding company that offers personal and commercial lines of property and casualty insurance to businesses and individuals. Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania.

The company's three reportable segments are its Investment function, Personal lines of insurance, and Commercial lines of insurance. Personal lines products consist primarily of homeowners and private passenger automobile policies. The Commercial lines products of its insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril, and workers' compensation policies. The group primarily operates in the United States.

The company markets its insurance products through a network of approximately 2,400 independent insurance agencies. 

Three key data points gauge dividend equities or funds such as Donegal Group Inc:

(1) Price (2) Dividends (3) Returns.

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


Donegal Group price per share was $15.47 as of Friday's market close. One year ago its price was $14.26. So DGICA price has gone up about 8.5% in the past year. 

If Donegal Group stock trades in the range of $13 to $20 this next year, its recent $15.47 price might rise by $3.03 to reach $18.50 by August 2, 2022. That estimate is in line with the median of two stock price estimates from analysts covering the stock for brokers.. 

DGICA Dividends

Donegal Group Inc's most recent regular quarterly dividend payout of  $0.16 is payable August 16, 2021 and projects an annual payout of $0.64 per share to yield 4.14% based on Friday's $15.47 closing price. DGICA has paid quarterly dividends increasing annually for 20 years.

DGICA Returns

Adding the $0.64 annual DGICA forward looking dividend to my $3.03 price upside estimate shows a $3.67 potential gross gain, per share, to be reduced by any costs to trade Donegal Group shares.  

At Friday's $15.47 price per share, a little over $1000 would buy 65 shares. A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.15 per share. Subtract that maybe $0.15 brokerage cost from my estimated $3.67 gross gain per share results in a net gain of $3.52 X 65 shares = $228.80 for a 22.85% net gain on a $1,005.55 investment.

So it is that Donegal Group Inc shows a possible 22.85% net gain including a 4.14% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in Donegal Group Inc. could generate $41.40 in cash dividends alone. And a single share bought at yesterday's closing price was $15.47! Thus, DGICA share price is now 37% of the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is a good time to pick up Donegal Group shares because the dividend from $1k invested exceeds the single share price by nearly three times. Consider yourself alerted.   

All of the estimates above are speculation based on the past history of Donegal Group Inc (DGICA). Only time and money invested in this stock will determine its true worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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