VTI Dividend Type Payments
Although VTI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Total Stock Market 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 Total Stock Market ETF (VTI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 287.99 | 289.47 | 288.42 | +0.65 | 3.8M | - | 115B |
VTI Dividend-Like Income Using Covered Calls
With VTI at 288.42, 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% | 8.65 | 2.4 |
| 5% | 14.42 | 4.0 |
| 10% | 28.84 | 7.9 |
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 VTI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 290.00 | 4.20 | 25 | 16.8 | 0.53 (0.2%) | |
| Feb 14 | 290.00 | 3.80 | 32 | 11.9 | 0.53 (0.2%) | |
| 5% Yield On VTI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 290.00 | 4.20 | 25 | 16.8 | 0.53 (0.2%) | |
| Feb 14 | 290.00 | 3.80 | 32 | 11.9 | 0.53 (0.2%) | |
| 10% Yield On VTI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 290.00 | 4.20 | 25 | 16.8 | 0.53 (0.2%) | |
| Feb 14 | 290.00 | 3.80 | 32 | 11.9 | 0.53 (0.2%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | IONQ dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | APLD dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | NTLA dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | JOBY dividend | |
Want more examples? VTEB Dividend | VTR Dividend
