VEU Dividend Type Payments
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%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | ICPT dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | ROKU dividend | |
| 3. | SPY dividend | 8. | XOP dividend | 3. | KPTI dividend | |
| 4. | FXI dividend | 9. | BAC dividend | 4. | BHC dividend | |
| 5. | QQQ dividend | 10. | JD dividend | 5. | VKTX dividend | |
Want more examples? VET Dividend | VFC Dividend
