This week, I'm looking for the fifth industrials representative of eight for my Ivy portfolio.

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 small-cap metal fabrication company named Graham Corp. Its trading ticker is GHM.

• Graham Corporation manufactures and sells critical equipment for the energy, defense, and chemical/petrochemical industries mostly in the United States.
• Its suite of products includes ejectors, surface condensers, and liquid vacuum pumps. For the defense industry, its equipment is used in nuclear propulsion power systems for the U.S. Navy.
• For the chemical and petrochemical industries, its equipment is used in fertilizer, ethylene, methanol and downstream chemical facilities. The company derives its revenue from the sale of heat transfer equipment.

The company sells its products directly, as well as through independent sales representatives.

Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

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

(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.

GHM Price

Graham's price per share closed at $20.68 yesterday. A year ago its price was $25.84. Price fell $5.16 or about 20% in the past year.

Assuming Graham's stock trades in the range of $18.00 to $28.00 this year, Graham's recent $20.68 price could rise by $3.32 and go to $24.00 by early-June, 2020.

GHM Dividends

Graham's most recent quarterly dividend was $0.10 declared May 29th and payable June 26th.

That $0.10 Q payout produces an annual amount of $0.40 yielding 1.93% based on yesterday's $20.68 closing price.

Gains For GHM?

Adding the $0.40 annual estimated dividend to my $3.32 estimate of Graham's price upside shows a $3.72 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 $20.86 recent stock price would buy us 48 of Graham Corp shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.21 per share.

Subtract that $0.21 brokerage cost from the estimated $3.72 gross annual gain leaves a net gain of $3.51 X 48 shares = $168.48 or a 16.85% net gain on a $992.64 investment.

Therefore, Graham Corp whose trading ticker symbol is GHM now shows a possible net gain of 16.85% including a 1.93% dividend yield.

Two brokers track Graham Corp stock:

One says "buy" GHM.

One says GHM will "outperform" peers.

The consensus score is 1.5 or "outperform".

Therefore, you can look at Graham Corp and see it has made money, is making money, and could net a 16.85% gain including a 1.93% 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 Graham Corp is worth your time and money.