This week, I'm seeking a second robust dividend energy sector representative for my new Ivy portfolio. 

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration, and production (E&P), equipment and services, integrated, midstream, refining & marketing. (Yes, six oily and gassy enterprises.)

Today I'm reviewing a small-cap oil & gas midstream company, named Star Group LP Its trading ticker symbol is SGU.

Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States.

It also installs, maintains, and repairs heating and air conditioning equipment, as well as offers ancillary home services, including home security and plumbing. 

As of September 30, 2017, the company sold home heating oil and propane to approximately 455,000 full service residential and commercial customers. It also sells home heating oil, gasoline, and diesel fuel to approximately 74,000 customers on a delivery only basis. 

The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was founded in 1995 and is headquartered in Stamford, Connecticut.

I use three key data points to gauge the value of any dividend equity or fund like Star Group LP: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys  will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

SGU Price

Star Group's price per share was $9.71 at yesterday's market close. A year ago its price was $10.45 for a price drop of $0.74 per share for the year or a 7% downside. 

Assuming Star Group's price will trade in the range of $8 to $11 next year, Star Group's recent $9.71 price could maybe climb by $1.29 and improve to $11.00 by mid-December, 2019. 

SGU Dividends

Star Group's most recent quarterly dividend was $0.1175 declared October 18th and paid out, November 6th. 

That $0.1175 quarterly stipend equates to an annual amount of $0.47 yielding 4.8% at yesterday's closing $9.71 price.

Gains For SGU?

Adding the $0.47 annual dividend to my estimated $1.29 annual price upside estimate for Star Group LP adds up to a $1.76 potential gross annual per share gain, which will be reduced by costs to trade the shares.  

For a little over $1,000.00 invested today at the $9.71 recent price we would buy 103 SGU shares. 

A $10 broker fee paid half at purchase and half at sale costs us $0.10 per share.

Subtract that $0.10 brokerage cost from the estimated $1.76 gross annual gain leaves a net gain of $1.66 X 103 shares 

= $170.98

for a 17% net gain on a $1,000.13 investment.

Therefore, Star Group LP, whose trading ticker symbol is SGU, now shows a possible 17% net gain including a 4.8% dividend yield. 

One broker covers this stock:

She says "buy" SGU shares.

Her price target, exactly $2.00 over my $11.00 estimate.

Therefore, you can look at Star Group LP and see it has made money, is making money, but could net a 17% to 25% net annual gain including that  4.8% 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 Star Group LP is worth your time and money.