In its concerted efforts to enhance shareholder value, the board of directors of CNO Financial Group, Inc. CNOrecently hiked its quarterly dividend by 11%, translating into a payout of 10 cents, up from 9 cents paid in March 2018. However, shares of the company have slid 1.4% in the last couple of trading days.
The annualized dividend of 40 cents yields 2.06%, based on the closing price of $19.94 as of May 11, 2018, better than the industry average of 1.85%. The company’s shareholders of record on Jun 11, 2018 would be rewarded with the increased amount of dividend by Jun 25, 2018.
CNO Financial’s dividend history has been encouraging with the company raising its annual dividend riding on the strength of its operational performance since 2013. The dividend payment has witnessed a five-CAGR of 27.2%.
Based on 167.7 million shares outstanding at the end of the first quarter, the company will have to dish out about $67 million per year.
CNO Financial had paid $15 million in dividend during the first quarter of 2018. The company remains committed to deploy 100% of free cash flow over time.
Shares of CNO Financial have lost 18.9%, comparing unfavorably with the industry’s loss of 6.4%. Nonetheless, we believe the company’s improving top line, strategic initiatives and an effective capital deployment to help rebound its shares.
