VOOV Dividend Type Payments

Vanguard S&P 500 Value ETF dividend

Although VOOV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P 500 Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:05 AM ET):

Vanguard S&P 500 Value ETF (VOOV)
Bid Ask Last Change Volume P/E Market Cap
190.03 190.15 190.06 +0.17 19K - 0.0B

VOOV Dividend-Like Income Using Covered Calls

With VOOV at 190.06, 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% 5.70 1.6
5% 9.50 2.6
10% 19.01 5.2

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 VOOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 190.00 2.05 30 6.3 0.00 (0.0%)
Sep 19 190.00 3.90 65 5.8 0.00 (0.0%)
5% Yield On VOOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 190.00 2.05 30 6.3 0.00 (0.0%)
Sep 19 190.00 3.90 65 5.8 0.00 (0.0%)
10% Yield On VOOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 190.00 2.05 30 6.3 0.00 (0.0%)
Sep 19 190.00 3.90 65 5.8 0.00 (0.0%)

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