VT Dividend Type Payments

VANGUARD TOTAL WORLD STOCK IND dividend

Although VT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD TOTAL WORLD STOCK IND to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:00 PM ET):

VANGUARD TOTAL WORLD STOCK IND (VT)
Bid Ask Last Change Volume P/E Market Cap
74.65 74.66 74.65 +0.35 397K - 166B

VT Dividend-Like Income Using Covered Calls

With VT at 74.65, 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% 2.24 0.6
5% 3.73 1.0
10% 7.47 2.0

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 VT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 75.00 0.65 39 1.7 0.34 (0.5%)
Nov 16 75.00 0.70 95 0.7 0.34 (0.5%)
5% Yield On VT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 75.00 0.65 39 1.7 0.34 (0.5%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.VIAV dividend
4.SPX dividend 9.FB dividend   4.JWN dividend
5.XLF dividend 10.GLD dividend   5.CGC dividend

Want more examples? VSTO Dividend | VTEB Dividend