VO Dividend Type Payments

Vanguard Mid-Cap ETF dividend

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 Fri 4:16 PM ET):

Vanguard Mid-Cap ETF (VO)
Bid Ask Last Change Volume P/E Market Cap
264.87 273.73 270.16 +0.44 560K - 16B

VO Dividend-Like Income Using Covered Calls

With VO at 270.16, 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% 8.10 2.2
5% 13.51 3.7
10% 27.02 7.4

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
Oct 17 275.00 8.80 141 6.2 1.27 (0.5%)
Jul 18 275.00 2.95 50 5.9 1.27 (0.5%)
5% Yield On VO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 275.00 8.80 141 6.2 1.27 (0.5%)
Jul 18 275.00 2.95 50 5.9 1.27 (0.5%)
10% Yield On VO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 275.00 1.80 22 8.2 1.27 (0.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jun 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.ALT dividend
2.SPY dividend 7.EEM dividend   2.IONQ dividend
3.SLV dividend 8.FXI dividend   3.BBAI dividend
4.QQQ dividend 9.TSLA dividend   4.RGTI dividend
5.GLD dividend 10.TLT dividend   5.LVWR dividend

Want more examples? VNT Dividend | VOC Dividend