VGIT Dividend Type Payments
Although VGIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Intermediate-Term Treasury ETF 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 Intermediate-Term Treasury ETF (VGIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 56.82 | 57.80 | 57.66 | +0.25 | 1.6M | - | 0.1B |
VGIT Dividend-Like Income Using Covered Calls
With VGIT at 57.66, here's a table showing how big the annual "dividend" (i.e. 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% | 1.73 | 0.5 |
| 5% | 2.88 | 0.8 |
| 10% | 5.77 | 1.6 |
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 VGIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 58.00 | 0.10 | 15 | 0.7 | 0.20 (0.3%) | |
| Oct 18 | 58.00 | 0.90 | 169 | 0.5 | 0.20 (0.3%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | BYND dividend | |
| 2. | QQQ dividend | 7. | TSLA dividend | 2. | HIMS dividend | |
| 3. | HYG dividend | 8. | SLV dividend | 3. | BYON dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | UPST dividend | |
| 5. | FXI dividend | 10. | AMZN dividend | 5. | RIVN dividend | |
Want more examples? VFH Dividend | VGK Dividend
