VXZ Dividend Type Payments

Although VXZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iPath Series B S&P 500 VIX Mid-Term Futures ETN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
13.35	13.46	13.48	-0.01	20K	-	0.0B

VXZ Dividend-Like Income Using Covered Calls

With VXZ at 13.48, 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%	0.40	0.1
5%	0.67	0.2
10%	1.35	0.4

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 VXZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	14.00	0.25	58	0.4	0.54 (4.0%)
Sep 20	14.00	0.65	149	0.4	0.54 (4.0%)

5% Yield On VXZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	14.00	0.25	58	0.4	0.54 (4.0%)
Sep 20	14.00	0.65	149	0.4	0.54 (4.0%)

10% Yield On VXZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	14.00	0.25	58	0.4	0.54 (4.0%)
Sep 20	14.00	0.65	149	0.4	0.54 (4.0%)

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Want more examples? VXX Dividend | VYGR Dividend