VO Dividend Type Payments
Although VO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Mid-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:20 PM ET):
Vanguard Mid-Cap ETF (VO) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
239.20 | 239.26 | 239.18 | +0.29 | 332K | - | 14B |
VO Dividend-Like Income Using Covered Calls
With VO at 239.18, 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% | 7.18 | 2.0 |
5% | 11.96 | 3.3 |
10% | 23.92 | 6.6 |
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 VO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 240.00 | 2.50 | 24 | 10.4 | 0.74 (0.3%) | |
Jun 21 | 240.00 | 5.40 | 59 | 9.2 | 0.74 (0.3%) |
5% Yield On VO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 240.00 | 2.50 | 24 | 10.4 | 0.74 (0.3%) | |
Jun 21 | 240.00 | 5.40 | 59 | 9.2 | 0.74 (0.3%) |
10% Yield On VO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 240.00 | 2.50 | 24 | 10.4 | 0.74 (0.3%) | |
Jun 21 | 240.00 | 5.40 | 59 | 9.2 | 0.74 (0.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | SNAP dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | CVNA dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | W dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? VNT Dividend | VOC Dividend