IVOO Dividend Type Payments
Although IVOO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P Mid-Cap 400 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 S&P Mid-Cap 400 ETF (IVOO) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
97.48 | 97.76 | 97.71 | -0.34 | 35K | - | 0.0B |
IVOO Dividend-Like Income Using Covered Calls
With IVOO at 97.71, 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% | 2.93 | 0.8 |
5% | 4.89 | 1.3 |
10% | 9.77 | 2.7 |
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 IVOO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 98.00 | 0.65 | 23 | 2.8 | 0.24 (0.2%) | |
Jun 21 | 100.00 | 0.80 | 58 | 1.4 | 2.24 (2.3%) |
5% Yield On IVOO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 98.00 | 0.65 | 23 | 2.8 | 0.24 (0.2%) | |
Jun 21 | 100.00 | 0.80 | 58 | 1.4 | 2.24 (2.3%) |
10% Yield On IVOO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 98.00 | 0.65 | 23 | 2.8 | 0.24 (0.2%) | |
Jun 21 | 98.00 | 1.80 | 58 | 3.1 | 0.24 (0.2%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | INTC dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | MPW dividend |
Want more examples? IVOL Dividend | IVOV Dividend