VT Dividend Type Payments

Vanguard Total World Stock Index ETF dividend

Although VT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Total World Stock Index 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 Total World Stock Index ETF (VT)
Bid Ask Last Change Volume P/E Market Cap
136.51 137.00 136.60 -0.27 1.5M - 1.0B

VT Dividend-Like Income Using Covered Calls

With VT at 136.60, 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% 4.10 1.1
5% 6.83 1.9
10% 13.66 3.7

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
Oct 17 137.00 1.20 36 3.3 0.00 (0.0%)
Sep 19 138.00 0.10 8 1.3 1.00 (0.7%)
5% Yield On VT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 137.00 1.20 36 3.3 0.00 (0.0%)
Nov 21 137.00 2.50 71 3.5 0.00 (0.0%)

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

 
Top 10 Open Interest For Sep 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.QQQ dividend   1.ATYR dividend
2.SPY dividend 7.IBIT dividend   2.OPEN dividend
3.IWM dividend 8.SLV dividend   3.IONQ dividend
4.PCG dividend 9.TSLA dividend   4.QURE dividend
5.EEM dividend 10.FXI dividend   5.ARCT dividend

Want more examples? VSTM Dividend | VTEB Dividend