VOOG Dividend Type Payments

Vanguard S&P 500 Growth ETF dividend

Although VOOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P 500 Growth 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 S&P 500 Growth ETF (VOOG)
Bid Ask Last Change Volume P/E Market Cap
290.00 303.00 292.51 -1.14 121K - 0.0B

VOOG Dividend-Like Income Using Covered Calls

With VOOG at 292.51, 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% 8.78 2.4
5% 14.63 4.0
10% 29.25 8.0

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 VOOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 20 305.00 4.90 149 3.3 2.00 (0.7%)
Dec 20 305.00 10.60 240 4.4 2.00 (0.7%)
5% Yield On VOOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 305.00 10.60 240 4.4 2.00 (0.7%)

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