VCIT Dividend Type Payments

Although VCIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Intermediate-TM Corp Bond Index to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:55 PM ET):

Vanguard Intermediate-TM Corp Bond Index (VCIT)
Bid Ask Last Change Volume P/E Market Cap
84.92 84.93 84.92 -0.03 1.3M - 19B

VCIT Dividend-Like Income Using Covered Calls

With VCIT at 84.92, here's a table showing how big the annual "dividend" (ie. 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% 2.55 0.7
5% 4.25 1.2
10% 8.49 2.3

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:

Want to increase dividends with covered calls?  Sign Up For A Free Trial

Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.VIPS dividend
3.SPY dividend 8.BAC dividend   3.IQ dividend
4.QQQ dividend 9.XOP dividend   4.FSLR dividend
5.FXI dividend 10.LLY dividend   5.BIDU dividend

Want more examples? VCEL Dividend | VCLT Dividend