VNQI Dividend Type Payments
Although VNQI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Global ex-U.S. Real Estate ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:15 AM ET):
| Vanguard Global ex-U.S. Real Estate ETF (VNQI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 41.85 |
41.87 |
41.87 |
-0.39 |
18K |
- |
0.0B |
VNQI Dividend-Like Income Using Covered Calls
With VNQI at 41.87, 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% |
1.26 |
0.3 |
| 5% |
2.09 |
0.6 |
| 10% |
4.19 |
1.1 |
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 VNQI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
42.00 |
0.15 |
10 |
1.5 |
0.13 (0.3%) |
| Oct 18 |
42.00 |
1.25 |
164 |
0.8 |
0.13 (0.3%) |
| 5% Yield On VNQI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
42.00 |
0.15 |
10 |
1.5 |
0.13 (0.3%) |
| Oct 18 |
42.00 |
1.25 |
164 |
0.8 |
0.13 (0.3%) |
| 10% Yield On VNQI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
42.00 |
0.15 |
10 |
1.5 |
0.13 (0.3%) |
| Jun 21 |
42.00 |
0.55 |
45 |
1.2 |
0.13 (0.3%) |
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