EDV Dividend Type Payments
Although EDV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Extended Duration Treasury ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:25 PM ET):
| Vanguard Extended Duration Treasury ETF (EDV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 68.35 | 68.38 | 68.37 | -0.59 | 360K | - | 0.1B |
EDV Dividend-Like Income Using Covered Calls
With EDV at 68.37, 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% | 2.05 | 0.6 |
| 5% | 3.42 | 0.9 |
| 10% | 6.84 | 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 EDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 69.00 | 1.10 | 23 | 4.8 | 0.62 (0.9%) | |
| Jun 21 | 69.00 | 2.05 | 58 | 3.5 | 0.62 (0.9%) | |
| 5% Yield On EDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 69.00 | 1.10 | 23 | 4.8 | 0.62 (0.9%) | |
| Jun 21 | 69.00 | 2.05 | 58 | 3.5 | 0.62 (0.9%) | |
| 10% Yield On EDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 69.00 | 1.10 | 23 | 4.8 | 0.62 (0.9%) | |
| Jun 21 | 69.00 | 2.05 | 58 | 3.5 | 0.62 (0.9%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | EEM dividend | 1. | FSLY dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | SNAP dividend | |
| 4. | SPY dividend | 9. | TSLA dividend | 4. | PINS dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | GRPN dividend | |
Want more examples? EDU Dividend | EDZ Dividend
