VIOO Dividend Type Payments

Although VIOO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P Small-Cap 600 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:00 AM ET):

Vanguard S&P Small-Cap 600 ETF (VIOO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
99.59	99.67	99.63	+1.47	12K	-	0.0B

VIOO Dividend-Like Income Using Covered Calls

With VIOO at 99.63, 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%	2.99	0.8
5%	4.98	1.4
10%	9.96	2.7

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 VIOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	100.00	4.00	124	3.2	0.33 (0.3%)
Jul 18	100.00	1.15	33	3.5	0.33 (0.3%)

5% Yield On VIOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	100.00	4.00	124	3.2	0.33 (0.3%)
Jul 18	100.00	1.15	33	3.5	0.33 (0.3%)

10% Yield On VIOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	100.00	4.00	124	3.2	0.33 (0.3%)
Jul 18	100.00	1.15	33	3.5	0.33 (0.3%)

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Want more examples? VIOG Dividend | VIOV Dividend