VIS Dividend Type Payments

VANGUARD INDUSTRIALS ETF dividend

Although VIS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD INDUSTRIALS ETF 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 INDUSTRIALS ETF (VIS)
Bid Ask Last Change Volume P/E Market Cap
143.88 147.19 146.59 +1.32 73K - 38B

VIS Dividend-Like Income Using Covered Calls

With VIS at 146.59, 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% 4.40 1.2
5% 7.33 2.0
10% 14.66 4.0

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 VIS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 147.00 0.80 32 1.9 0.00 (0.0%)
Oct 19 150.00 0.90 60 1.5 2.81 (1.9%)
5% Yield On VIS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 148.00 1.60 60 2.7 0.81 (0.6%)
Nov 16 147.00 2.30 88 2.4 0.00 (0.0%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.SPY dividend 6.GE dividend   1.MOMO dividend
2.EEM dividend 7.GLD dividend   2.AKRX dividend
3.SPX dividend 8.FB dividend   3.UVXY dividend
4.QQQ dividend 9.IWM dividend   4.BABA dividend
5.XLF dividend 10.GDX dividend   5.GERN dividend

Want more examples? VIRT Dividend | VISI Dividend