IVOO Dividend Type Payments

Although IVOO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P Mid-Cap 400 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 S&P Mid-Cap 400 ETF (IVOO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
117.11	117.33	116.97	-1.62	91K	-	0.0B

IVOO Dividend-Like Income Using Covered Calls

With IVOO at 116.97, 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%	3.51	1.0
5%	5.85	1.6
10%	11.70	3.2

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 IVOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	117.00	2.80	88	2.8	0.00 (0.0%)
Jul 17	117.00	4.40	179	2.3	0.00 (0.0%)

5% Yield On IVOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	117.00	2.80	88	2.8	0.00 (0.0%)
Jul 17	117.00	4.40	179	2.3	0.00 (0.0%)

10% Yield On IVOO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	117.00	1.85	32	4.8	0.00 (0.0%)
Mar 20	117.00	2.85	60	4.2	0.00 (0.0%)

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Want more examples? IVOL Dividend | IVOV Dividend