CNC Dividend Type Payments

Centene Corp dividend

Although CNC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Centene Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Centene Corp (CNC)
Bid Ask Last Change Volume P/E Market Cap
63.50 63.91 63.51 -1.77 2.7M 58 27B

CNC Dividend-Like Income Using Covered Calls

With CNC at 63.51, 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% 1.91 0.5
5% 3.18 0.9
10% 6.35 1.7

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 CNC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 67.50 0.30 23 1.3 3.59 (5.7%)
Apr 18 70.00 0.45 57 0.8 6.09 (9.6%)
5% Yield On CNC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 67.50 0.30 23 1.3 3.59 (5.7%)
Apr 18 65.00 1.95 57 3.4 1.09 (1.7%)
10% Yield On CNC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 65.00 1.00 23 4.3 1.09 (1.7%)
Apr 18 65.00 1.95 57 3.4 1.09 (1.7%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.Z dividend
2.EEM dividend 7.GE dividend   2.FSLR dividend
3.SPY dividend 8.LLY dividend   3.ROKU dividend
4.QQQ dividend 9.BAC dividend   4.IQ dividend
5.FXI dividend 10.GLD dividend   5.DBX dividend

Want more examples? CNAT Dividend | CNCE Dividend