VV Dividend Type Payments
Although VV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Large-Cap ETF 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 Large-Cap ETF (VV) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
236.24 | 240.51 | 240.32 | +2.13 | 264K | - | 13B |
VV Dividend-Like Income Using Covered Calls
With VV at 240.32, 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% | 7.21 | 2.0 |
5% | 12.02 | 3.3 |
10% | 24.03 | 6.6 |
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 VV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 240.00 | 2.70 | 24 | 9.1 | 0.00 (0.0%) | |
May 17 | 240.00 | 3.40 | 52 | 5.6 | 0.00 (0.0%) |
5% Yield On VV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 240.00 | 2.70 | 24 | 9.1 | 0.00 (0.0%) | |
May 17 | 240.00 | 3.40 | 52 | 5.6 | 0.00 (0.0%) |
10% Yield On VV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 240.00 | 2.70 | 24 | 9.1 | 0.00 (0.0%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | SOUN dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | DWAC dividend | |
4. | SLV dividend | 9. | EEM dividend | 4. | HUT dividend | |
5. | FXI dividend | 10. | TSLA dividend | 5. | NOVA dividend |
Want more examples? VUZI Dividend | VVI Dividend