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 Wed 4:16 PM ET):
SPDR S&P 1500 Value Tilt ETF (VLU) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
86.90 | 260.70 | 174.35 | +2.20 | 6K | - | 0.0B |
VLU Dividend-Like Income Using Covered Calls
With VLU at 174.35, 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% | 5.23 | 1.4 |
5% | 8.72 | 2.4 |
10% | 17.44 | 4.8 |
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 Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | SOUN dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | DWAC dividend | |
4. | SLV dividend | 9. | EEM dividend | 4. | HUT dividend | |
5. | FXI dividend | 10. | TSLA dividend | 5. | NOVA dividend |
Want more examples? VLRS Dividend | VLUE Dividend