VBK Dividend Type Payments

Vanguard Small-Cap Growth ETF dividend

Although VBK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Small-Cap Growth 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 Growth ETF (VBK)
Bid Ask Last Change Volume P/E Market Cap
298.59 300.34 298.68 -3.88 380K - 9.1B

VBK Dividend-Like Income Using Covered Calls

With VBK at 298.68, 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% 8.96 2.5
5% 14.93 4.1
10% 29.87 8.2

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:

3% Yield On VBK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 300.00 0.90 3 18.7 0.00 (0.0%)
Jan 16 300.00 5.20 31 15.7 0.00 (0.0%)
5% Yield On VBK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 300.00 0.90 3 18.7 0.00 (0.0%)
Jan 16 300.00 5.20 31 15.7 0.00 (0.0%)
10% Yield On VBK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 300.00 0.90 3 18.7 0.00 (0.0%)
Jan 16 300.00 5.20 31 15.7 0.00 (0.0%)

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Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
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4.QQQ dividend 9.XLF dividend   4.BMNR dividend
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Want more examples? VB Dividend | VBND Dividend