BIV Dividend Type Payments
Although BIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Intermediate-Term Bond 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 Intermediate-Term Bond ETF (BIV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 77.95 | 77.98 | 78.00 | +0.11 | 2.0M | - | 3.4B |
BIV Dividend-Like Income Using Covered Calls
With BIV at 78.00, 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% | 2.34 | 0.6 |
| 5% | 3.90 | 1.1 |
| 10% | 7.80 | 2.1 |
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 BIV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 78.00 | 0.30 | 39 | 0.8 | 0.02 (0.0%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | SGML dividend | |
| 2. | IBIT dividend | 7. | SPY dividend | 2. | TE dividend | |
| 3. | INTC dividend | 8. | NFLX dividend | 3. | BHVN dividend | |
| 4. | TLT dividend | 9. | QQQ dividend | 4. | ERAS dividend | |
| 5. | SLV dividend | 10. | GLD dividend | 5. | AAOI dividend | |
Want more examples? BIS Dividend | BIZD Dividend
