Donegal Group Inc., known by the ticker symbol DGICA, is a small cap Property and Casualty Insurance company in the financial services business sector. This is my first report on DGICA for my Viital stock portfolio I last reported on this company on August 2nd and picked it as the 48th selection for my Vista portfolio 6.

Donegal Group Inc. is an insurance holding company that offers personal and commercial lines of property and casualty insurance to businesses and individuals. 

Image Source: Pixabay

The company's two reportable segments compose its Investment function, they are (1) Personal lines of insurance and (2) Commercial lines of insurance. 

Personal lines products consist primarily of homeowners and private passenger automobile policies. 

The Commercial line's products of its insurance subsidiaries consist primarily of the 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.

Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania

Three key data points gauge any dividend equity or fund such as Donegal Group Inc. (DGICA):

(1) Price

(2) Dividends

(3) Returns

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

DGICA Price

Donegal Group's price per share was $14.46 as of yesterday's market close. One year ago its price was $14.19. So, DGICA's share price increased just about 2% in the past year.

If Donegal Group's stock trades in the range of $13 to $20.00 this next year, its recent $14.46 price could rise by $4.04 to reach $18.50 by November 9, 2022. My estimate corresponds to the median of target price estimates from 2 analysts tracking DGICA for their brokerage houses.  

DGICA Dividends

Donegal Group's most recently announced a quarterly dividend of  $0.16 will pay out November 15th, to shareholders. The compounded annual payout of $0.64 yields 4.43% based on yesterday's $14.46 closing price. DGICA has paid quarterly dividends increasing generally annually since May 2001: That is over 20 years of increasing payouts. 

DGICA Returns

Adding the $0.64 annual estimated DGICA forward-looking dividend to the $4.04 price upside estimate from me and the two analysts shows a $4.68 potential gross gain, per share, to be reduced by any costs to trade DGICA shares.  

At yesterday's $14.46 price per share, a little over $1000 would buy 69 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $4.68 gross gain per share results in a net gain of $4.54 X 69 shares = $313.26 for a 31.33% net gain on a $997.74 investment.

So it is that Donegal Group Inc. (DGICA) shows a possible 31.33% net gain including a 4.43% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Donegal Group Inc. (DGICA) could generate $44.30 in cash dividends alone. Note that a single share bought at yesterday's closing price was $14.46! Thus, Donegal Group Inc's share price is over 3 times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is the time to pickup DGICA shares. The estimated next year's dividend from $1k invested is over three times the single share price. Consider yourself alerted. It's a sign!  

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 market value.