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 paper & paper products company, named Schweitzer-Mauduit International Inc. Its trading ticker symbol is SWM. I last reported on this company on July 28th for my Safari portfolio.

Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and resin-based products. It manufactures and sells paper and reconstituted tobacco products to the tobacco industry as well as specialized paper products.

The company operates through two segments, Engineered Papers and Advanced Materials & Structures. The Engineered Papers segment produces and sells cigarette papers, reconstituted tobacco leaf, and wrapper and binder products to cigarette and cigar manufacturers; and other non-tobacco paper products, such as lightweight papers for printing and writing, flooring laminates, and food service packaging. 

The Advanced Materials & Structures segment manufactures resin-based nets, films, and other non-wovens for filtration, infrastructure and construction, transportation, medical, and industrial applications. 

Schweitzer-Mauduit International, Inc. was founded in 1995 and is headquartered in Alpharetta, Georgia.

I use three key data points to gauge the value of any dividend equity or fund like Schweitzer-Mauduit International, Inc.(SWM): 

(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. 

SWM Price

Schweitzer-Mauduit's price per share was $30.71 at yesterday's market close.  A year ago its price was $42.81 for a price decrease of $12.10 per share for the year, that's a  28% drop. 

Assuming SWM's price will trade in the range of $25 to $45  next year, Schweitzer-Mauduit's recent $30.71 price could improve by $5.00 and grow to $35.71 by late-November, 2019. 

SWM Dividends

Schweitzer-Mauduit's most recent quarterly dividend was $0.44 declared November 7th and payable December 21st. 

That $0.44 quarterly stipend equates to an annual amount of $1.76 yielding 5.74% at yesterday's closing $30.71 price.

Gains For SWM?

Adding the $1.76 calculated annual dividend to my estimated $5.00 annual price upside for Schweitzer-Mauduit International, Inc. (SWM) makes a $6.76 potential gross annual per share gain, which will be reduced by costs to trade the shares.  

 A little over $1,000.00 invested today at the $30.71 recent price buys 33 SWM shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.30 per share, subtracting that $0.30 brokerage cost from the estimated $6.76 gross annual gain leaves a net gain of $6.46 X 33 shares = $213.18 for a 21% net gain on a $1,013.43 investment.

Therefore, Schweitzer-Mauduit International, Inc., now shows a possible 21% net gain including a 5.74% dividend yield. 

Two brokers cover this stock:

One broker says "buy" SWM

The other says "hold" your SWM shares.

Those two Wall Street wizards collectively price SWM shares at $40.00 next November. That's $4.29 over my $35.71 estimate. 

Therefore, you may look at these speculative numbers as follows: Schweitzer-Mauduit International, Inc. whose trading ticker symbol is SWM, has made money, is making money, and could net a 15% to a 25% net annual gain including a 5.74% 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 Schweitzer-Mauduit International, Inc. (SWM) is worth your time and money.