The financial services sector 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 a  small-cap insurance - property & casualty firm named Donegal Group Inc. It's trading ticker symbol is DGICB.

Donegal Group Inc is a US-based insurance holding company offering personal and commercial lines of property and casualty insurance to businesses and individuals. It products include protection against automobile accidents, theft and other events.

It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC. 

The company offers private passenger automobile policies; homeowners policies; commercial automobile policies; commercial multi-peril policies; and workers' compensation policies. 

Donegal Group Inc., through its interest in Donegal Financial Services Corporation, also operates a savings bank. 

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 or fund like  Donegal Group Inc.: 

(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. 

DGICB Price

Donegal's price per share was $13.70 at yesterday's market close. A year ago its price was $13.85 for a price slump of $0.15 per share.

Assuming Donegal's price will trade in the range of $12 to $16 next year, Donegal's current $13.70 price could manage a $2.00 gain and grow to $15.70 by early-October, 2019. 

DGICB Dividends

Donegal's most recent quarterly dividend was $0.1425 declared July 26th and paid August 15th. 

At this most recent $0.1425 quarterly rate, Donegal's annual dividend equals $0.57 yielding 4.2% at yesterday's closing $13.70 price.

Gains For DGICB?

Adding the $0.57 estimated annual dividend to my estimated $2.00 annual price upside for Donegal makes a $2.57 potential gross annual per share gain, which will be reduced by the costs to trade the shares.  

 A little over $1,000.00 invested today at the $13.70 recent price buys 73 Donegal Group Inc. shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.14 per share

Subtracting that $0.14 brokerage cost from the estimated $2.57 gross annual gain leaves a net gain of $2.43 X 73 shares 

= $177.39

or a 17.7% net gain on a $1,000.10 investment.

Therefore, Donegal Group Inc., whose trading ticker symbol is DGICB, now shows a possible 17.7% net gain including a 4.2% dividend yield. 

One broker covers this stock:

She says DGICB is a stock to "hold".

Thus, the consensus single analyst recommendation number is 3.0 or "hold". 

The price target set by that broker is  $0.30 over the $15.70 price target I suggested for DGICB. 

So, you could look at all these speculative numbers this way, Donegal Group Inc., whose trading ticker symbol is DGICB, has made money, is making money, and could net a 17% to 20% net annual gain including a 4.2% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if Donegal Group Inc. is worth your time and money.