BLV Dividend Type Payments

Vanguard Long-Term Bond ETF dividend

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

Vanguard Long-Term Bond ETF (BLV)
Bid Ask Last Change Volume P/E Market Cap
67.11 69.49 68.55 +0.17 592K - 0.5B

BLV Dividend-Like Income Using Covered Calls

With BLV at 68.55, 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% 2.06 0.6
5% 3.43 0.9
10% 6.86 1.9

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 BLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 70.00 0.65 64 1.0 0.51 (0.7%)
Sep 20 70.00 1.10 155 0.7 0.51 (0.7%)
5% Yield On BLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 70.00 0.65 64 1.0 0.51 (0.7%)

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

 
 
Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.HYG dividend 6.KWEB dividend   1.CVNA dividend
2.IWM dividend 7.EEM dividend   2.FSLY dividend
3.FXI dividend 8.SLV dividend   3.CLSK dividend
4.QQQ dividend 9.TSLA dividend   4.MARA dividend
5.SPY dividend 10.EWZ dividend   5.EYPT dividend

Want more examples? BLUE Dividend | BLX Dividend