VBR Dividend Type Payments
Although VBR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Small-Cap Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:10 PM ET):
| Vanguard Small-Cap Value ETF (VBR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 194.82 | 194.93 | 194.88 | +2.15 | 146K | - | 7.4B |
VBR Dividend-Like Income Using Covered Calls
With VBR at 194.88, 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% | 5.85 | 1.6 |
| 5% | 9.74 | 2.7 |
| 10% | 19.49 | 5.3 |
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 VBR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 194.00 | 3.20 | 51 | 4.5 | 0.00 (0.0%) | |
| Jul 18 | 194.00 | 1.50 | 23 | 2.5 | 0.00 (0.0%) | |
| 5% Yield On VBR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 194.00 | 3.20 | 51 | 4.5 | 0.00 (0.0%) | |
| Jul 18 | 195.00 | 1.00 | 23 | 4.3 | 0.07 (0.0%) | |
| 10% Yield On VBR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 196.00 | 1.50 | 23 | 6.5 | 1.07 (0.5%) | |
| Sep 19 | 195.00 | 4.60 | 86 | 5.3 | 0.07 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | ENPH dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CAPR dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | CELC dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | IREN dividend | |
Want more examples? VBND Dividend | VBTX Dividend
