BLV Dividend Type Payments

Vanguard Long-Term Bond ETF dividend

Although BLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Long-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 Mon 4:16 PM ET):

Vanguard Long-Term Bond ETF (BLV)
Bid Ask Last Change Volume P/E Market Cap
67.00 68.23 68.25 +0.49 800K - 0.4B

BLV Dividend-Like Income Using Covered Calls

With BLV at 68.25, 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% 2.05 0.6
5% 3.41 0.9
10% 6.83 1.9

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 BLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 68.00 0.70 26 1.8 0.00 (0.0%)
Sep 19 68.00 1.05 61 1.3 0.00 (0.0%)
5% Yield On BLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 68.00 0.70 26 1.8 0.00 (0.0%)
Sep 19 68.00 1.05 61 1.3 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Aug 15 Expiration     Top 5 High Yield
1.SLV dividend 6.IBIT dividend   1.MBX dividend
2.NVDA dividend 7.TSLA dividend   2.EOSE dividend
3.GLD dividend 8.AMZN dividend   3.WULF dividend
4.IWM dividend 9.AAPL dividend   4.ASTS dividend
5.SPY dividend 10.QQQ dividend   5.NET dividend

Want more examples? BLOX Dividend | BLX Dividend