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 Fri 4:16 PM ET):

Vanguard Total Stock Market ET (VTI)
Bid Ask Last Change Volume P/E Market Cap
134.75 135.29 134.90 -3.26 4.9M - 0.0B

VTI Dividend-Like Income Using Covered Calls

With VTI at 134.90, 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% 4.05 1.1
5% 6.75 1.8
10% 13.49 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 VTI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 141.00 0.25 15 1.7 5.71 (4.2%)
Jan 18 142.00 0.70 43 1.6 6.71 (5.0%)
5% Yield On VTI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 140.00 0.50 15 3.3 4.71 (3.5%)
Jan 18 141.00 0.80 43 1.9 5.71 (4.2%)
10% Yield On VTI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 139.00 0.65 15 4.3 3.71 (2.8%)
Jan 18 138.00 2.15 43 5.0 2.71 (2.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.USO dividend   4. dividend
5.EWZ dividend 10.VXX dividend   5. dividend

Want more examples? VTEB Dividend | VTL Dividend