VBK Dividend Type Payments
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 Thu 4:16 PM ET):
Vanguard Small-Cap Growth ETF (VBK) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
232.74 | 257.00 | 243.27 | -0.92 | 234K | - | 7.3B |
VBK Dividend-Like Income Using Covered Calls
With VBK at 243.27, 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% | 7.30 | 2.0 |
5% | 12.16 | 3.3 |
10% | 24.33 | 6.7 |
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 VBK Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 20 | 260.00 | 5.20 | 149 | 3.5 | 3.00 (1.2%) | |
Dec 20 | 260.00 | 8.90 | 240 | 3.7 | 3.00 (1.2%) |
5% Yield On VBK Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 20 | 260.00 | 5.20 | 149 | 3.5 | 3.00 (1.2%) | |
Dec 20 | 260.00 | 8.90 | 240 | 3.7 | 3.00 (1.2%) |
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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. | PENN dividend |
Want more examples? VBIV Dividend | VBND Dividend