IVOV Dividend Type Payments

Vanguard S&P Mid-Cap 400 Value ETF dividend

Although IVOV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P Mid-Cap 400 Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Vanguard S&P Mid-Cap 400 Value ETF (IVOV)
Bid Ask Last Change Volume P/E Market Cap
98.57 100.06 99.35 -0.91 38K - 0.0B

IVOV Dividend-Like Income Using Covered Calls

With IVOV at 99.35, 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% 2.98 0.8
5% 4.97 1.4
10% 9.94 2.7

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 IVOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 100.00 2.00 77 2.5 0.00 (0.0%)
Jul 18 100.00 3.90 169 2.3 0.00 (0.0%)
5% Yield On IVOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 100.00 2.00 77 2.5 0.00 (0.0%)
Jul 18 100.00 3.90 169 2.3 0.00 (0.0%)

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