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 Fri 4:16 PM ET):
| Vanguard S&P 500 ETF (VOO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 576.90 |
576.91 |
576.92 |
-0.26 |
4.2M |
- |
0.0B |
VOO Dividend-Like Income Using Covered Calls
With VOO at 576.92, 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% |
17.31 |
4.7 |
| 5% |
28.85 |
7.9 |
| 10% |
57.69 |
15.8 |
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 |
| Aug 1 |
575.00 |
7.40 |
15 |
36.6 |
0.00 (0.0%) |
| Aug 8 |
575.00 |
9.00 |
22 |
32.2 |
0.00 (0.0%) |
| 5% Yield On VOO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
575.00 |
7.40 |
15 |
36.6 |
0.00 (0.0%) |
| Aug 8 |
575.00 |
9.00 |
22 |
32.2 |
0.00 (0.0%) |
| 10% Yield On VOO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
575.00 |
7.40 |
15 |
36.6 |
0.00 (0.0%) |
| Aug 8 |
575.00 |
9.00 |
22 |
32.2 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
