MOD Dividend Type Payments

Although MOD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Modine Manufacturing Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:15 PM ET):

Modine Manufacturing Company (MOD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
119.57	119.93	119.93	+1.91	368K	39	6.2B

MOD Dividend-Like Income Using Covered Calls

With MOD at 119.93, here's a table showing how big the annual "dividend" (i.e. 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%	3.60	1.0
5%	6.00	1.6
10%	11.99	3.3

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 MOD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	120.00	23.80	239	10.0	0.07 (0.1%)
May 16	120.00	18.00	148	12.2	0.07 (0.1%)

5% Yield On MOD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	120.00	23.80	239	10.0	0.07 (0.1%)
May 16	120.00	18.00	148	12.2	0.07 (0.1%)

10% Yield On MOD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	120.00	23.80	239	10.0	0.07 (0.1%)
May 16	120.00	18.00	148	12.2	0.07 (0.1%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jan 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	INTC dividend	1.	NMRA dividend
2.	SLV dividend	7.	SPY dividend	2.	RGTI dividend
3.	AAPL dividend	8.	TSLA dividend	3.	NNE dividend
4.	EEM dividend	9.	IWM dividend	4.	HUMA dividend
5.	XLF dividend	10.	TLT dividend	5.	SOUN dividend

Want more examples? MOAT Dividend | MODV Dividend