BND Dividend Type Payments
Although BND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Total Bond Market ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:30 PM ET):
| Vanguard Total Bond Market ETF (BND) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 72.51 | 72.52 | 72.52 | -0.24 | 5.2M | - | 34B |
BND Dividend-Like Income Using Covered Calls
With BND at 72.52, 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% | 2.18 | 0.6 |
| 5% | 3.63 | 1.0 |
| 10% | 7.25 | 2.0 |
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 BND Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 73.00 | 0.20 | 31 | 0.6 | 0.48 (0.7%) | |
| Mar 21 | 73.00 | 0.60 | 94 | 0.6 | 0.48 (0.7%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | RGTI dividend | |
| 3. | XLF dividend | 8. | KWEB dividend | 3. | SERV dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | ACHR dividend | |
| 5. | FXI dividend | 10. | TSLA dividend | 5. | SEDG dividend | |
Want more examples? BMY Dividend | BNDC Dividend
