CNP Dividend Type Payments

CENTERPOINT ENERGY dividend

Although CNP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CENTERPOINT ENERGY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:35 AM ET):

CENTERPOINT ENERGY (CNP)
Bid Ask Last Change Volume P/E Market Cap
27.78 27.79 27.78 +0.03 132K 7.7 14B

CNP Dividend-Like Income Using Covered Calls

With CNP at 27.78, 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% 0.83 0.2
5% 1.39 0.4
10% 2.78 0.8

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 CNP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 28.00 0.05 3 1.7 0.21 (0.8%)
Nov 16 28.00 0.40 31 1.3 0.21 (0.8%)
5% Yield On CNP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 28.00 0.05 3 1.7 0.21 (0.8%)
Nov 16 28.00 0.40 31 1.3 0.21 (0.8%)
10% Yield On CNP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 28.00 0.05 3 1.7 0.21 (0.8%)
Nov 16 28.00 0.40 31 1.3 0.21 (0.8%)

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Want more examples? CNOB Dividend | CNQ Dividend