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 Mon 10:50 AM ET):

Vanguard Mid-Cap Value ETF (VOE)
Bid Ask Last Change Volume P/E Market Cap
160.56 160.60 160.57 -0.84 86K - 4.2B

VOE Dividend-Like Income Using Covered Calls

With VOE at 160.57, 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% 4.82 1.3
5% 8.03 2.2
10% 16.06 4.4

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 VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 160.00 5.00 138 3.2 0.00 (0.0%)
Jul 18 160.00 1.75 47 2.4 0.00 (0.0%)
5% Yield On VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 160.00 5.00 138 3.2 0.00 (0.0%)
Jul 18 160.00 1.75 47 2.4 0.00 (0.0%)

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Want more examples? VOD Dividend | VONV Dividend