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 Fri 4:16 PM ET):
| Vanguard Small-Cap Growth ETF (VBK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 300.89 | 309.50 | 306.86 | +2.32 | 141K | - | 9.1B |
VBK Dividend-Like Income Using Covered Calls
With VBK at 306.86, 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% | 9.21 | 2.5 |
| 5% | 15.34 | 4.2 |
| 10% | 30.69 | 8.4 |
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 VBK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 310.00 | 8.10 | 57 | 14.2 | 0.50 (0.2%) | |
| Nov 21 | 310.00 | 5.20 | 29 | 17.9 | 0.50 (0.2%) | |
| 5% Yield On VBK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 310.00 | 8.10 | 57 | 14.2 | 0.50 (0.2%) | |
| Nov 21 | 310.00 | 5.20 | 29 | 17.9 | 0.50 (0.2%) | |
| 10% Yield On VBK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 310.00 | 8.10 | 57 | 14.2 | 0.50 (0.2%) | |
| Nov 21 | 310.00 | 5.20 | 29 | 17.9 | 0.50 (0.2%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | UUUU dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | CRML dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | UPST dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | RXRX dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | LQDA dividend | |
Want more examples? VB Dividend | VBND Dividend
