CNO Dividend

Although CNO has a dividend of 0.10 with an ex-dividend date of Sep 7, you can sell covered calls on CNO FINANCIAL GROUP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

CNO FINANCIAL GROUP (CNO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
21.61	22.50	21.61	+0.13	549K	17	3.5B

CNO Dividend-Like Income Using Covered Calls

With CNO at 21.61, 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%	0.65	0.2
5%	1.08	0.3
10%	2.16	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 CNO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 21	23.00	0.10	39	0.3	0.50 (2.3%)
Dec 21	24.00	0.35	130	0.3	1.50 (6.9%)

5% Yield On CNO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	23.00	0.65	130	0.5	0.50 (2.3%)
Mar 15	24.00	0.70	214	0.3	1.50 (6.9%)

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1.	SPY dividend	6.	BAC dividend	1.	M dividend
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Want more examples? CNNE Dividend | CNOB Dividend