VOE Dividend Type Payments

Vanguard Mid-Cap Value ETF dividend

Although VOE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Mid-Cap Value 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 Value ETF (VOE)
Bid Ask Last Change Volume P/E Market Cap
170.54 174.08 172.35 +0.17 270K - 4.5B

VOE Dividend-Like Income Using Covered Calls

With VOE at 172.35, 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% 5.17 1.4
5% 8.62 2.4
10% 17.24 4.7

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 VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 174.00 1.00 50 1.8 0.00 (0.0%)
Jan 16 175.00 1.50 78 1.9 0.92 (0.5%)
5% Yield On VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 174.00 4.50 169 2.6 0.00 (0.0%)

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Want more examples? VOD Dividend | VONV Dividend