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 Wed 2:55 PM ET):
| Vanguard Short-Term Corporate Bond ETF (VCSH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 78.50 | 78.51 | 78.51 | -0.10 | 3.0M | - | 6.8B |
VCSH Dividend-Like Income Using Covered Calls
With VCSH at 78.51, 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% | 2.36 | 0.6 |
| 5% | 3.93 | 1.1 |
| 10% | 7.85 | 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 May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | CAVA dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | JACK dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | QUBT dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RCAT dividend | |
Want more examples? VCR Dividend | VCTR Dividend
