VV Dividend Type Payments
Although VV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Vanguard Large-Cap ETF (VV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 267.29 | 276.56 | 271.94 | +0.74 | 324K | - | 15B |
VV Dividend-Like Income Using Covered Calls
With VV at 271.94, 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% | 8.16 | 2.2 |
| 5% | 13.60 | 3.7 |
| 10% | 27.19 | 7.5 |
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 VV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 280.00 | 2.90 | 100 | 2.9 | 3.44 (1.3%) | |
| Jul 18 | 280.00 | 7.10 | 192 | 3.7 | 3.44 (1.3%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | RGTI dividend | |
| 2. | SLV dividend | 7. | XLF dividend | 2. | IONQ dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | U dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | VIR dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | HCAT dividend | |
Want more examples? VUZI Dividend | VVV Dividend
