BIV Dividend Type Payments
Although BIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Intermediate-Term Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:40 AM ET):
| Vanguard Intermediate-Term Bond ETF (BIV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 75.31 | 75.32 | 75.31 | +0.03 | 399K | - | 3.3B |
BIV Dividend-Like Income Using Covered Calls
With BIV at 75.31, 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% | 2.26 | 0.6 |
| 5% | 3.77 | 1.0 |
| 10% | 7.53 | 2.1 |
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:
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | LUMN dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | SYM dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | AFRM dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | QUBT dividend | |
| 5. | FXI dividend | 10. | IBIT dividend | 5. | BYON dividend | |
Want more examples? BIS Dividend | BIZD Dividend
