This week, I'm looking for the fourth technology representative of six for my Ivy portfolio. The technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, and information technology and services, to internet, scientific instruments, software, solar and all such technological enterprises.

Today I'm reviewing a small-cap (~$819M) communication equipment company named Adtran Inc. Its trading ticker symbol is ADTN.

Adtran Inc is a telecommunications equipment provider with a broad portfolio of products covering optical, broadband, WAN, LAN, and unified communication equipment. ADTN was founded in 1985 and is headquartered in Huntsville, Alabama.

The company has a solid reputation for and expertise in delivering quality products at low prices to all tiers of communication-service providers. It operates under two segments, namely Network Solutions and Services & Support. Adtran has sales in the United States, Europe, the Middle East and Africa, Asia-Pacific, and Latin America. The company serves communications service providers, cable/ multiple system operators, and distributed enterprises.

I use three key data points to gauge the value of any dividend equity-like Adtran:

(1) Price

 (2) Dividends

 (3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest. Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

ADTN Price

Adtran's price per share closed at $17.15 yesterday. A year ago its price was $14.70. Price increased $2.65 or 38.37% in the past year.

Assuming Adtran's stock trades in the range of $11.00 to $20.00 this year, Adtran's recent $17.15 price could rise by $0.43 and go to $17.58 by early May, 2020.

ADTN Dividends

Adtran's most recent declared quarterly dividend was $0.09 declared April 18th and payable May 16th. A $0.9 Q dividend equates to an annual payout of $0.36 for a yield of 2.10% at yesterday's $17.15 closing price.

Gains For ADTN?

Adding a $0.36 annual estimated dividend to my $0.43 estimate of Adtran's price upside shows a $0.79 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little under $1,000.00 today at the $17.15 recent stock price would buy us 58 ADTN shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.17 per share. Subtract that $0.17 brokerage cost from the estimated $0.79 gross annual gain leaves a net gain of $0.62 X 58 shares

= $35.96 or a 3.7% net gain on a $994.70 investment.

Therefore, Adtran now shows a possible net gain of 3.7% including a 2.10% dividend yield.

Seven brokers cover this stock:

• One says "buy" ADTN.
• Six say "hold" ADTN.
• The consensus score is 2.7 or "hold".

However, you can look at Adtran and see it has made money, is making money, and could net 3.7% gains including a 2.10% 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 determine if Adtran Inc is worth your time and money.