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 Tue 4:16 PM ET):

VANGUARD MID-CAP VALUE ETF (VOE)
Bid Ask Last Change Volume P/E Market Cap
108.24 109.71 108.96 +1.74 342K - 180B

VOE Dividend-Like Income Using Covered Calls

With VOE at 108.96, 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% 3.27 0.9
5% 5.45 1.5
10% 10.90 3.0

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 19 115.00 0.05 4 1.3 5.29 (4.9%)
Nov 16 112.00 0.30 32 0.9 2.29 (2.1%)
5% Yield On VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 111.00 0.55 32 1.7 1.29 (1.2%)
Jan 18 111.00 1.50 95 1.6 1.29 (1.2%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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Want more examples? VOD Dividend | VOO Dividend