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 4:16 PM ET):

Vanguard Mid-Cap Value ETF (VOE)
Bid Ask Last Change Volume P/E Market Cap
164.74 168.15 166.45 -0.71 207K - 4.4B

VOE Dividend-Like Income Using Covered Calls

With VOE at 166.45, 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% 4.99 1.4
5% 8.32 2.3
10% 16.65 4.6

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 VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 168.00 1.15 26 3.8 0.00 (0.0%)
Oct 17 168.00 3.00 89 3.2 0.00 (0.0%)
5% Yield On VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 168.00 1.15 26 3.8 0.00 (0.0%)
Oct 17 168.00 3.00 89 3.2 0.00 (0.0%)

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Want more examples? VOD Dividend | VONV Dividend