VTI Dividend Type Payments

VANGUARD TOTAL STOCK MARKET ET dividend

Although VTI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD TOTAL STOCK MARKET ET to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

VANGUARD TOTAL STOCK MARKET ET (VTI)
Bid Ask Last Change Volume P/E Market Cap
145.00 145.75 145.49 -1.16 2.7M - 7,032B

VTI Dividend-Like Income Using Covered Calls

With VTI at 145.49, 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% 4.36 1.2
5% 7.27 2.0
10% 14.55 4.0

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 VTI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 146.00 0.25 3 8.3 0.25 (0.2%)
Sep 21 148.00 0.70 38 1.8 2.25 (1.5%)
5% Yield On VTI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 146.00 0.25 3 8.3 0.25 (0.2%)
Sep 21 147.00 1.10 38 2.9 1.25 (0.9%)
10% Yield On VTI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 146.00 0.25 3 8.3 0.25 (0.2%)
Sep 21 146.00 1.65 38 4.3 0.25 (0.2%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
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3.QQQ dividend 8.FXI dividend   3.JWN dividend
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5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? VTEB Dividend | VTL Dividend