VEU Dividend Type Payments

Vanguard FTSE ALL-World Ex-U dividend

Although VEU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard FTSE ALL-World Ex-U 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 FTSE ALL-World Ex-U (VEU)
Bid Ask Last Change Volume P/E Market Cap
49.09 49.50 49.30 +0.50 3.5M - 0.0B

VEU Dividend-Like Income Using Covered Calls

With VEU at 49.30, 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% 1.48 0.4
5% 2.47 0.7
10% 4.93 1.4

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 VEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 50.00 0.65 127 0.5 0.50 (1.0%)
Sep 20 50.00 1.15 218 0.5 0.50 (1.0%)

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