VOO Dividend Type Payments

Although VOO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P 500 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:25 AM ET):

Vanguard S&P 500 ETF (VOO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
271.56	271.58	271.56	+0.15	1.2M	-	0.0B

VOO Dividend-Like Income Using Covered Calls

With VOO at 271.56, 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%	8.15	2.2
5%	13.58	3.7
10%	27.16	7.4

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 VOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 19	275.00	1.20	26	4.6	3.42 (1.3%)
Oct 18	280.00	3.80	117	3.2	8.42 (3.1%)

5% Yield On VOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 19	275.00	1.20	26	4.6	3.42 (1.3%)
Oct 18	275.00	6.00	117	5.1	3.42 (1.3%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Jul 19 Expiration				Top 5 High Yield
1.	SPY dividend	6.	USO dividend	1.	ITCI dividend
2.	SPX dividend	7.	OIH dividend	2.	BB dividend
3.	EEM dividend	8.	QCOM dividend	3.	BYND dividend
4.	QQQ dividend	9.	FXI dividend	4.	MU dividend
5.	IWM dividend	10.	AAPL dividend	5.	KPTI dividend

Want more examples? VOE Dividend | VOOG Dividend