BNDX Dividend Type Payments

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

Vanguard Total Intl Bond ETF (BNDX)
Bid Ask Last Change Volume P/E Market Cap
57.65 57.73 57.70 +0.15 1.5M - 19B

BNDX Dividend-Like Income Using Covered Calls

With BNDX at 57.70, 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% 1.73 0.5
5% 2.89 0.8
10% 5.77 1.6

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:

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.CHWY dividend
2.FXI dividend 7.NIO dividend   2.CLF dividend
3.GDX dividend 8.BAC dividend   3.MAN dividend
4.SPX dividend 9.GLD dividend   4.OSTK dividend
5.EEM dividend 10.IWM dividend   5.SKX dividend

Want more examples? BNDC Dividend | BNED Dividend