CULP Dividend Type Payments

Although CULP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Culp, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:55 PM ET):

Culp, Inc (CULP)
Bid Ask Last Change Volume P/E Market Cap
20.35 20.44 20.35 -0.21 18K 13 0.3B

CULP Dividend-Like Income Using Covered Calls

With CULP at 20.35, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.61 0.2
5% 1.02 0.3
10% 2.04 0.6

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CULP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 22.50 0.05 26 0.2 2.06 (10.1%)
Jul 19 22.50 0.55 89 0.6 2.06 (10.1%)
5% Yield On CULP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 22.50 0.55 89 0.6 2.06 (10.1%)
Oct 18 22.50 1.05 180 0.6 2.06 (10.1%)
10% Yield On CULP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 22.50 0.55 89 0.6 2.06 (10.1%)
Oct 18 22.50 1.05 180 0.6 2.06 (10.1%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.COTY dividend 7.BAC dividend   2.TWTR dividend
3.EEM dividend 8.EWZ dividend   3.BCRX dividend
4.FXI dividend 9.XOP dividend   4.TSLA dividend
5.SPX dividend 10.XLF dividend   5.F dividend

Want more examples? CUK Dividend | CUR Dividend