VUG Dividend Type Payments
Although VUG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:00 AM ET):
Vanguard Growth ETF (VUG) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
331.90 | 331.97 | 331.95 | +0.81 | 240K | - | 46B |
VUG Dividend-Like Income Using Covered Calls
With VUG at 331.95, 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% | 9.96 | 2.7 |
5% | 16.60 | 4.5 |
10% | 33.20 | 9.1 |
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 VUG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 335.00 | 5.00 | 24 | 20.8 | 3.03 (0.9%) | |
Jun 21 | 335.00 | 9.20 | 59 | 15.6 | 3.03 (0.9%) |
5% Yield On VUG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 335.00 | 5.00 | 24 | 20.8 | 3.03 (0.9%) | |
Jun 21 | 335.00 | 9.20 | 59 | 15.6 | 3.03 (0.9%) |
10% Yield On VUG Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 335.00 | 5.00 | 24 | 20.8 | 3.03 (0.9%) | |
Jun 21 | 335.00 | 9.20 | 59 | 15.6 | 3.03 (0.9%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | SNAP dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | W dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | COIN dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | SOUN dividend |
Want more examples? VTWO Dividend | VUSE Dividend