A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!
Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)
Today we'll review the first of five consumer cyclical sector stock candidates vying to be the sixth selection for the Vista portfolio.
My subject today is a small cap textile manufacturer, Culp Inc. Its trading ticker symbol is CULP. This is my first report on Culp Inc (CULP) for this Vista dog of the week portfolio. I have reviewed it for other portfolios, however.
Culp Inc manufacturers, sources, and markets mattress fabrics and sewn covers used for covering mattresses and box springs and upholstery fabrics including cut and sewn kits used in the production of upholstered furniture.
The company has two operating segments Mattress fabrics and Upholstery fabrics.
The mattress fabrics segment, also known as Culp Home Fashions, manufactures and markets mattress fabrics and mattress covers to bedding manufacturers.
The upholstery fabrics segment markets fabrics for residential and commercial furniture, including jacquard woven fabrics, velvets, micro denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane leather look fabrics for use in the production of residential and commercial upholstered furniture, such as sofas, recliners, chairs, loveseats, sectionals, and sofa-beds, as well as office seating and window treatment products; and installation services.
Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina.
I use three key data points to gauge dividend equities or funds like Culp Inc (CULP):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
CULP Price
Culp's price per share closed at $14.08 yesterday. A year ago its price was $15.20. Price fell $1.12 or just about 7.4% last year.
If Culp's stock trades in the range of $5 to $20 this next year, its recent $14.08 price might rise by $0.92 to reach $15.00 by October 12, 2021.
CULP Dividends
Culp's most recently declared Quarterly dividend was $0.105 payable October 15th (Thursday). Dividends are estimated to total $0.42 per share annually and yield 2.98% at yesterday's $14.08 closing price.
CULP Gains?
Adding the $0.52 annual anticipated dividend to my $0.92 optimistic estimate of Pfizer's price upside shows a $1.44 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today in Culp Inc at $14.08, we would buy 71 shares of CULP stock.
A $10 broker fee paid half at purchase and half at sale would cost us $0.14 per share.
Subtract that $0.14 brokerage cost from my estimated $1.44 gross gain per share results in a net gain of $1.30 X 71 shares = $92.30 for a nearly 9.25% net gain on a $999.68 investment.
So it goes that Culp Inc (CULP) shows a possible near 9.25% net gain including a 2.98% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Culp Inc (CULP). Only time and money invested in this stock will determine its worth.
Comments
Log in or sign up to join the conversation.