EDV Dividend Type Payments
Although EDV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Extended Duration Treasury ETF 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):
| Vanguard Extended Duration Treasury ETF (EDV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 64.11 | 64.88 | 64.09 | -1.43 | 1.5M | - | 0.1B |
EDV Dividend-Like Income Using Covered Calls
With EDV at 64.09, 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% | 1.92 | 0.5 |
| 5% | 3.20 | 0.9 |
| 10% | 6.41 | 1.8 |
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 EDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 0.75 | 36 | 2.1 | 0.12 (0.2%) | |
| Jul 18 | 65.00 | 0.15 | 8 | 1.9 | 0.12 (0.2%) | |
| 5% Yield On EDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 0.75 | 36 | 2.1 | 0.12 (0.2%) | |
| Jul 18 | 65.00 | 0.15 | 8 | 1.9 | 0.12 (0.2%) | |
| 10% Yield On EDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 0.75 | 36 | 2.1 | 0.12 (0.2%) | |
| Jul 18 | 65.00 | 0.15 | 8 | 1.9 | 0.12 (0.2%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | NFE dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | APPS dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | BRSL dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | METC dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PROK dividend | |
Want more examples? EDU Dividend | EDZ Dividend
