A portfolio of stocks I started September 3, named Volio Folio, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

I'm reviewing today the fourth of five consumer cyclical sector stocks striving to be picked to join the Volio folio collection. This would be the third pick for Volio!

This consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

My subject today is a small-cap textile manufacturing concern named Culp Inc. Their trading ticker symbol is CULP. I last reported on this company May 13th.

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.

Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina.

I use three key data points to gauge dividend-paying equities or funds like Culp Inc. (CULP):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

CULP Price

Culp's price per share closed at $17.02 yesterday. A year ago its price was $24.65. In a year its price dropped $7.63 or 31%.

Assuming Culp's stock trades in the range of $12 to $24.00 this year, Culp's recent $17.02 price could rise by $1.98 and get to $19.00 by mid September 2020. If its past month's momentum continues.

CULP Dividends

Culp's latest declared quarterly dividend was $0.10 payable October 15th.

That $0.10 Q payout added to the previous three equates to $0.40 annually and yields2.35% based on yesterday's $17.02 closing price.

SGC Gains?

Adding the $0.40 annual estimated dividend to my $1.98 estimate of Superior's price upside shows a $2.38 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little over $1,000.00 today into Culp Inc. at its $17.02 recent stock price, we'd buy 59 shares of Culp Inc. (CULP) shares.

A $10 broker fee paid half at purchase and half at sale will cost us roughly $0.17 per share.

Subtract that $0.17 brokerage cost from the estimated $2.38 gross estimated gain leaves a net gain of $2.21 X 59 shares = $130.39 or a 13% net gain on a $1,004.18 investment.

Therefore, Culp Inc., whose trading ticker symbol is CULP now shows a possible net gain of 13% including a 2.35% dividend yield. It could be more, it could be a little less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Culp Inc. (CULP) is worth your time and money.