VCSH Dividend Type Payments
Although VCSH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Short-Term Corporate Bond 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 Short-Term Corporate Bond ETF (VCSH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 80.11 | 80.16 | 80.13 | +0.10 | 4.7M | - | 6.9B |
VCSH Dividend-Like Income Using Covered Calls
With VCSH at 80.13, 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% | 2.40 | 0.7 |
| 5% | 4.01 | 1.1 |
| 10% | 8.01 | 2.2 |
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:
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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? VCR Dividend | VCTR Dividend
