VOE Dividend Type Payments
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 Thu 4:16 PM ET):
| VANGUARD MID-CAP VALUE ETF (VOE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 112.58 | 114.89 | 113.12 | +0.97 | 251K | - | 180B |
VOE Dividend-Like Income Using Covered Calls
With VOE at 113.12, here's a table showing how big the annual "dividend" (ie. 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% | 3.39 | 0.9 |
| 5% | 5.66 | 1.5 |
| 10% | 11.31 | 3.1 |
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 | |
| Jan 18 | 115.00 | 1.70 | 156 | 1.1 | 0.11 (0.1%) | |
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| Top 10 Open Interest For Sep 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | EEM dividend | 6. | GE dividend | 1. | AMAT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | NVDA dividend | |
| 3. | SPX dividend | 8. | IWM dividend | 3. | UVXY dividend | |
| 4. | QQQ dividend | 9. | FB dividend | 4. | DE dividend | |
| 5. | XLF dividend | 10. | GDX dividend | 5. | AKRX dividend | |
Want more examples? VOD Dividend | VOO Dividend
