VWO Dividend Type Payments

Although VWO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard FTSE Emerging Markets 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 FTSE Emerging Markets ETF (VWO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
41.66	41.67	41.71	+0.13	6.0M	-	51B

VWO Dividend-Like Income Using Covered Calls

With VWO at 41.71, 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%	1.25	0.3
5%	2.09	0.6
10%	4.17	1.1

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 VWO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	42.00	0.45	24	1.9	0.33 (0.8%)
Jun 21	42.00	0.85	59	1.4	0.33 (0.8%)

5% Yield On VWO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	42.00	0.45	24	1.9	0.33 (0.8%)
Jun 21	42.00	0.85	59	1.4	0.33 (0.8%)

10% Yield On VWO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	42.00	0.45	24	1.9	0.33 (0.8%)
Jun 21	42.00	0.85	59	1.4	0.33 (0.8%)

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

Top 10 Open Interest For May 17 Expiration				Top 5 High Yield
1.	IWM dividend	6.	EEM dividend	1.	SNAP dividend
2.	HYG dividend	7.	KWEB dividend	2.	META dividend
3.	QQQ dividend	8.	TSLA dividend	3.	FSLY dividend
4.	SPY dividend	9.	SLV dividend	4.	CVNA dividend
5.	FXI dividend	10.	EWZ dividend	5.	PINS dividend

Want more examples? VVV Dividend | VXF Dividend