A portfolio of stocks I'm building, named Ivy, holds 52 dividend dogs. Ivy is the fourth portfolio I've built (at a one dividend dog per week pace) since 2014. Four portfolios = IV!

Today I'm reviewing the second of five industrials sector stocks this week striving to become the eighth of eight from that sector to join the Ivy folio.

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 business services outfit named Resources Connection Inc. Their trading ticker symbol is RECN. I selected RECN over the past weekend as a replacement foe a struggling industrial sector stock in the Ivy collection. Yes surprise, it's already in! Here's their story:

Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals (RGP).

The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support.

Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.

The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000.

Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California. It does most of its consulting through its operative subsidiary, Resources Global Professionals (RGP).

I use three key data points to gauge dividend-paying equities or funds like Resources Connection Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.

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

RECN Price

RECN's price per share closed at $16.86 yesterday. A year ago its price was $16.00. In a year its price grew  $0.86 or 5.3%.

Assuming RECN's stock trades in the range of $12.00 to $20.00 this year, RECN's recent $16.86 price could rise by $1.14 and go to $18.00 by August 2020.

RECN Dividends

RECN's latest declared quarterly dividend was $0.14 payable September 19th.

That $0.14 Q payout generates an annual payout of $0.56 yielding  3.32% based on Friday's $16.86 closing price.

Gains For RECN?

Adding the $0.56 annual estimated dividend to my $1.14 estimate of RECN's price upside shows a $1.70 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little under $1,000.00 today at the $16.86 recent stock price, we'd buy 59 Resources Connection Inc 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 $1.70 gross estimated gain leaves a net gain of $1.53 X 59 shares = ($90.27) or a 9.05% net gain on a $994.74 investment.

Therefore, Resources Connection Inc whose trading ticker symbol is RECN now shows a possible net gain of 9% including a 3.32% dividend yield.

Two brokers track Resources Connection Inc stock:

One says "hold" RECN

One says RECN will "underperform"

Their consensus score of 3.5 equates to "Underperform." The brokers hate it!

Our Look at Resources Connection Inc shows it has made money, is making money, and could net a 9% gain including its 3.32% 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 learn if Resources Connection Inc is worth your time and money.