This week, I'm looking for the fourth financial services representative of seven for my Ivy portfolio.

That financial services sector includes six industries all Financial Services includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.

Today I'm reviewing small-cap insurance - property & casualty markets firm named Donegal Group Inc. Its trading ticker symbol is DGICA. I last reported on Donegal Group October 9, 2018, at that time I discussed their other ticker, DGICB.

Donegal Group Inc is a US-based insurance holding company. It offers personal and commercial lines of property and casualty insurance to businesses and individuals.

The company's segments include Investments, Personal lines of insurance, Commercial lines of insurance and Investment in DFSC. The 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 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. Donegal Group Inc. is a subsidiary of Donegal Mutual Insurance Company.

I use three key data points to gauge the value of any dividend equity-like Donegal Group 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 first three primary keys, however, best tell whether a company has made, is making, and will make money.

DGICA Price

Donegal's price per share closed at $13.08 yesterday. A year ago its price was $15.36. The price fell $2.38 or 14.8% in the past year.

Assuming Donegal's stock trades in the range of $12 to $18 this year, Donegal's recent $13.08 price could rise by $1.92 and go to $15.00 by early-April, 2020.

DGICA Dividends

Donegal's most recent Quarterly dividend was $0.1425  declared December 20th and paid, February 15th.

That $0.1425 Q dividend equates to an annual payout of $0.57 for a yield of 4.36% at yesterday's $13.08 closing price.

Gains For LAZ?

Adding the $0.57 annual estimated dividend to my $1.92 estimate of Donegal's price upside shows a $2.49 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $13.08 recent stock price would buy us 76 Donegal Group Inc shares.

A $10 broker fee paid half at purchase and half at sale costs $0.13 per share.

Subtract that $0.13 brokerage cost from the estimated $2.49 gross annual gain leaves a net gain of $2.36 X 76 shares

= $179.36 or a 17.95% net gain on a $994.08 investment.

Therefore, Donegal Group Inc, whose trading ticker symbol is DGICA, now shows a possible net gain of nearly 18% including a 4.36% dividend yield.

Two brokers cover this stock:

One says DGICA will 'outperform' peers.

One says 'hold" DGICA.

Therefore, you can look at  Donegal Group Inc and see it has made money, is making money, and could net 18% gains including a 4.36% 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 Donegal Group Inc is worth your time and money