VXX Dividend Type Payments
Although VXX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iPath Series B S&P 500 VIX Short-Term Futures ETN 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):
| iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.52 | 49.60 | 49.45 | +3.11 | 7.0M | - | 0.0B |
VXX Dividend-Like Income Using Covered Calls
With VXX at 49.45, 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% | 1.48 | 0.4 |
| 5% | 2.47 | 0.7 |
| 10% | 4.95 | 1.4 |
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 VXX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 50.00 | 3.00 | 29 | 10.3 | 0.40 (0.8%) | |
| Feb 14 | 49.50 | 4.45 | 36 | 12.1 | 0.00 (0.0%) | |
| 5% Yield On VXX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 50.00 | 3.00 | 29 | 10.3 | 0.40 (0.8%) | |
| Feb 14 | 49.50 | 4.45 | 36 | 12.1 | 0.00 (0.0%) | |
| 10% Yield On VXX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 50.00 | 3.00 | 29 | 10.3 | 0.40 (0.8%) | |
| Feb 14 | 49.50 | 4.45 | 36 | 12.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | RCAT dividend | |
| 2. | SLV dividend | 7. | XLF dividend | 2. | DNA dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | EVH dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | CIFR dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | CRNC dividend | |
Want more examples? VXUS Dividend | VYGR Dividend
