This week, I'm seeking the second robust dividend-paying stock from the basic materials business sector for my Ivy portfolio. 

That basic materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.

Today I'm reviewing a small-cap specialty chemicals company, named Kronos Worldwide Inc. Its trading ticker symbol is KRO. I've not reported on this company before.

Kronos Worldwide Inc  (KRO) manufactures and sells titanium dioxide pigments (TiO2) which are used in a variety of products including coatings on automobiles, traffic paint, aircraft, machines, appliances, and in both commercial and residential interiors and exteriors.

The company operates in Europe, North America, the Asia Pacific, and internationally. 

It produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for paints, coatings, plastics, paper, fibers, and ceramics, as well as inks, food, and cosmetics. 

The company also produces ilmenite, a raw material used directly as a feedstock in sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater; titanium oxychloride for use in the formulation of pearlescent pigments, as well as capacitors for cell phones; and titanyl sulfate used in pearlescent pigments,

The company sells and services its products under the Kronos brand through distributors and agents to paint, plastics, decorative laminate, and paper manufacturers. 

The company is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.

I use three key data points to gauge the value of any dividend equity or fund like Kronos Worldwidel, Inc.(KRO): 

(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. 

KRO Price

Kronos's price per share was $12.47 at yesterday's market close. A year ago its price was $27.58 for a price decrease of $15.11 per share for the year, that's a54.79% drop. 

Assuming KRO's price will trade in the range of $10 to $25next year, Kronos's recent $12.47 price could improve by $4.00 and grow to $16.47 by late-November, 2019. 

KRO Dividends

Kronos's most recent quarterly dividend was $0.17 declared October 24th and payable December 13th. 

That $0.17 quarterly stipend equates to an annual amount of $0.68 yielding 5.45% at yesterday's closing $12.47 price.

Gains For KRO?

Adding the $0.68 annual dividend to my estimated $4.00 annual price upside for Kronos Worldwide Inc. (KRO) adds up to a $4.68 potential gross annual per share gain, which will be reduced by costs to trade the shares.  

 A little under $1,000.00 invested today at the $12.47 recent price buys 80 KRO shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.13 per share, subtracting that $0.13 brokerage cost from the estimated $4.68 gross annual gain leaves a net gain of $4.55 X 80 shares = $364.00 for a 36% net gain on a $997.60 investment.

Therefore, Kronos Worldwide Inc.,whose trading ticker symbol is KRO, now shows a possible 36% net gain including a 5.45% dividend yield. 

Three brokers cover this stock:

One broker says "buy" KRO

Another says "hold" your KRO shares.

The third thinks the stock will "underperform" peers.

Those three Wall Street wizards collectively price KRO shares at $19.00 next November. That's $2.53 over my $16.47 estimate. 

Therefore, you may look at these speculative numbers as follows: Kronos Worldwide, Inc. whose trading ticker symbol is KRO, has made money, is making money, and could net a 15% to a 45% net annual gain including a 5.45% 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 Kronos Worldwide, Inc. (KRO) is worth your time and money.