A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 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!

My subject today is a micro-cap textile manufacturing company named, Culp Inc. Its trading ticker is CULP. This is my second report on Culp Inc for the Volio portfolio. My previous report was on September 19th last year.

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. The company also provides 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:

(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 $10.04 yesterday. A year ago their price was $18.10. Price fell $8.06 or over 44.5% last year.

Assuming Culp's stock trades in the range of $4 to $12 this next year, its recent $10.04 price might rise by $1.46 to reach $1150 by July 28, 2021.

CULP Dividends

Culp's most recent declared quarterly dividend was $0.105, paid July 17th. That $0.105 Q dividend equates to $0.42 annually for a yield of 4.18% at yesterday's $10.04 share price.

CULP Gains?

Adding the $0.42 annual estimated dividend to my $1.46 optimistic estimate of Culp's price upside shows a $1.88 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 we would buy 100 shares of CULP stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.10 per share.

Subtract that $0.10 brokerage cost from my estimated $1.88 gross gain per share results in a net gain of $1.78 X 100 shares = $178.00 for a 17.8% net gain on a $1004.00 investment.

Thus, Culp Inc shows a possible 17.8% net gain including a 4.18% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Culp Inc is worth it.