High quality p-type PbTe-CdTe monocrystalline alloys containing up to 10 at.$%$ of Cd are obtained by self-selecting vapor transport method. Mid infrared photoluminescence experiments are performed to follow the variation of the fundamental energy gap as a function of Cd content. The Hall mobility, thermoelectric power, thermal conductivity and thermoelectric figure of merit parameter $ZT$ are investigated experimentally and theoretically paying particular attention to the two-valence band structure of the material. It is shown that the heavy-hole band near the $Sigma$ point of the Brillouin zone plays an important role and is responsible for the Pb$_{1-x}$Cd$_x$Te hole transport at higher Cd-content. Our data and their description can serve as the standard for Pb$_{1-x}$Cd$_x$Te single crystals with $x$ up to 0.1. It is shown, that monocrystalline Pb$_{1-x}$Cd$_x$Te samples with relatively low Cd content of about 1 at.% and hole concentration of the order of 10$^{20}$ cm$^{-3}$ may exhibit $ZT approx$ 1.4 at 600 K.
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