VB Dividend Type Payments

Vanguard Small-Cap ETF dividend

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

Vanguard Small-Cap ETF (VB)
Bid Ask Last Change Volume P/E Market Cap
233.40 234.20 233.78 -2.38 702K - 18B

VB Dividend-Like Income Using Covered Calls

With VB at 233.78, 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% 7.01 1.9
5% 11.69 3.2
10% 23.38 6.4

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 VB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 235.00 5.30 52 10.2 0.80 (0.3%)
Jul 18 235.00 2.90 24 12.1 0.80 (0.3%)
5% Yield On VB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 235.00 5.30 52 10.2 0.80 (0.3%)
Jul 18 235.00 2.90 24 12.1 0.80 (0.3%)
10% Yield On VB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 235.00 5.30 52 10.2 0.80 (0.3%)
Jul 18 235.00 2.90 24 12.1 0.80 (0.3%)

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Want more examples? VAW Dividend | VBK Dividend