VEA Dividend Type Payments

VANGUARD MSCI EAFE ETF dividend

Although VEA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD MSCI EAFE ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

VANGUARD MSCI EAFE ETF (VEA)
Bid Ask Last Change Volume P/E Market Cap
40.59 43.75 40.95 -0.25 11.7M - 1,091B

VEA Dividend-Like Income Using Covered Calls

With VEA at 40.95, 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% 1.23 0.3
5% 2.05 0.6
10% 4.10 1.1

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 Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.SKX dividend
3.QQQ dividend 8.FXI dividend   3.CLF dividend
4.EEM dividend 9.IWM dividend   4.CRBP dividend
5.BAC dividend 10.AMD dividend   5.TLRY dividend

Want more examples? VDE Dividend | VEC Dividend