VLU Dividend Type Payments
Although VLU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 1500 Value Tilt ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| SPDR S&P 1500 Value Tilt ETF (VLU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 203.12 | 206.06 | 204.74 | +2.14 | 7K | - | 0.0B |
VLU Dividend-Like Income Using Covered Calls
With VLU at 204.74, 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% | 6.14 | 1.7 |
| 5% | 10.24 | 2.8 |
| 10% | 20.47 | 5.6 |
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 VLU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 210.00 | 3.80 | 152 | 2.5 | 3.94 (1.9%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KVUE dividend | 6. | GLD dividend | 1. | INBX dividend | |
| 2. | IBIT dividend | 7. | TLT dividend | 2. | CRML dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | USAR dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | NB dividend | |
| 5. | HYG dividend | 10. | SPY dividend | 5. | SNDK dividend | |
Want more examples? VLRS Dividend | VLUE Dividend
