VEU Dividend Type Payments

VANGUARD FTSE ALL-WORLD EX-US dividend

Although VEU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD FTSE ALL-WORLD EX-US 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-US (VEU)
Bid Ask Last Change Volume P/E Market Cap
51.09 51.46 51.24 +0.34 1.7M - 387B

VEU Dividend-Like Income Using Covered Calls

With VEU at 51.24, 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% 1.54 0.4
5% 2.56 0.7
10% 5.12 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
Dec 21 52.00 0.60 127 0.5 0.54 (1.1%)
Mar 15 52.00 1.10 211 0.5 0.54 (1.1%)

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