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 Tue 4:16 PM ET):
| Vanguard FTSE ALL-World Ex-U (VEU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 42.69 | 50.00 | 46.73 | +0.18 | 10.6M | - | 0.0B |
VEU Dividend-Like Income Using Covered Calls
With VEU at 46.73, 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% | 1.40 | 0.4 |
| 5% | 2.34 | 0.6 |
| 10% | 4.67 | 1.3 |
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 Dec 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | DUST dividend | 6. | NSSC dividend | 1. | dividend | |
| 2. | NOVT dividend | 7. | MOD dividend | 2. | dividend | |
| 3. | MMS dividend | 8. | VV dividend | 3. | dividend | |
| 4. | VSI dividend | 9. | EC dividend | 4. | dividend | |
| 5. | DXJS dividend | 10. | NTWK dividend | 5. | dividend | |
Want more examples? VET Dividend | VFC Dividend
