BND Dividend Type Payments

Vanguard Total Bond Market ETF dividend

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

Vanguard Total Bond Market ETF (BND)
Bid Ask Last Change Volume P/E Market Cap
81.10 81.19 81.11 -0.10 2.0M - 39B

BND Dividend-Like Income Using Covered Calls

With BND at 81.11, 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% 2.43 0.7
5% 4.06 1.1
10% 8.11 2.2

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:

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

Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.BCRX dividend
2.SPX dividend 7.BAC dividend   2.LB dividend
3.EEM dividend 8.AAPL dividend   3.CARA dividend
4.QQQ dividend 9.XLF dividend   4.NIO dividend
5.EWZ dividend 10.VXX dividend   5.AMD dividend

Want more examples? BNCL Dividend | BNDC Dividend