VNQI Dividend Type Payments
Although VNQI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Global ex-U.S. Real Estate ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Vanguard Global ex-U.S. Real Estate ETF (VNQI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 40.00 |
42.70 |
42.63 |
-0.66 |
261K |
- |
0.0B |
VNQI Dividend-Like Income Using Covered Calls
With VNQI at 42.63, 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% |
1.28 |
0.4 |
| 5% |
2.13 |
0.6 |
| 10% |
4.26 |
1.2 |
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 VNQI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
43.00 |
0.05 |
4 |
1.3 |
0.30 (0.7%) |
| Dec 20 |
43.00 |
0.15 |
39 |
0.4 |
0.30 (0.7%) |
| 5% Yield On VNQI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
43.00 |
0.05 |
4 |
1.3 |
0.30 (0.7%) |
| 10% Yield On VNQI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
43.00 |
0.05 |
4 |
1.3 |
0.30 (0.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
