VXF Dividend Type Payments

Vanguard Extended Market Index dividend

Although VXF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Extended Market Index to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:55 PM ET):

Vanguard Extended Market Index (VXF)
Bid Ask Last Change Volume P/E Market Cap
117.18 117.19 117.19 +0.90 236K - 0.0B

VXF Dividend-Like Income Using Covered Calls

With VXF at 117.19, 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% 3.52 1.0
5% 5.86 1.6
10% 11.72 3.2

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 VXF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 117.00 0.75 22 2.5 0.00 (0.0%)
Apr 18 118.00 0.95 56 1.7 0.81 (0.7%)
5% Yield On VXF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 117.00 0.75 22 2.5 0.00 (0.0%)
Apr 18 118.00 0.95 56 1.7 0.81 (0.7%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.AMRN dividend
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3.SPY dividend 8.LLY dividend   3.IMGN dividend
4.QQQ dividend 9.BAC dividend   4.ASND dividend
5.FXI dividend 10.GLD dividend   5.CRON dividend

Want more examples? VWO Dividend | VXUS Dividend