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 Fri 4:16 PM ET):
Vanguard Mid-Cap Value ETF (VOE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
145.42 | 149.84 | 148.40 | +1.11 | 437K | - | 3.9B |
VOE Dividend-Like Income Using Covered Calls
With VOE at 148.40, 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% | 4.45 | 1.2 |
5% | 7.42 | 2.0 |
10% | 14.84 | 4.1 |
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 | |
May 17 | 150.00 | 1.65 | 29 | 5.7 | 0.16 (0.1%) | |
Jun 21 | 150.00 | 3.10 | 64 | 4.8 | 0.16 (0.1%) |
5% Yield On VOE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 150.00 | 1.65 | 29 | 5.7 | 0.16 (0.1%) | |
Jun 21 | 150.00 | 3.10 | 64 | 4.8 | 0.16 (0.1%) |
10% Yield On VOE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 150.00 | 1.65 | 29 | 5.7 | 0.16 (0.1%) | |
Jun 21 | 150.00 | 3.10 | 64 | 4.8 | 0.16 (0.1%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | CLSK dividend | |
4. | QQQ dividend | 9. | TSLA dividend | 4. | MARA dividend | |
5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend |
Want more examples? VOD Dividend | VONV Dividend