BLV Dividend Type Payments

Vanguard Long-Term Bond ETF dividend

Although BLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Long-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 Thu 4:16 PM ET):

Vanguard Long-Term Bond ETF (BLV)
Bid Ask Last Change Volume P/E Market Cap
67.50 69.78 68.12 -0.41 403K - 0.5B

BLV Dividend-Like Income Using Covered Calls

With BLV at 68.12, 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% 2.04 0.6
5% 3.41 0.9
10% 6.81 1.9

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 BLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 70.00 0.35 30 1.2 0.22 (0.3%)
Sep 19 70.00 1.45 156 0.9 0.22 (0.3%)
5% Yield On BLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 70.00 0.35 30 1.2 0.22 (0.3%)
Jun 20 70.00 0.65 65 1.0 0.22 (0.3%)

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Want more examples? BLUE Dividend | BLX Dividend