IVOV Dividend Type Payments

Vanguard S&P Mid-Cap 400 Value ETF dividend

Although IVOV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P Mid-Cap 400 Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Vanguard S&P Mid-Cap 400 Value ETF (IVOV)
Bid Ask Last Change Volume P/E Market Cap
94.72 101.96 96.11 -1.27 11K - 0.0B

IVOV Dividend-Like Income Using Covered Calls

With IVOV at 96.11, 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% 2.88 0.8
5% 4.81 1.3
10% 9.61 2.6

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:

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

 
 
Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.QQQ dividend   1.RZLT dividend
2.IWM dividend 7.FXI dividend   2.ESTC dividend
3.SPY dividend 8.SLV dividend   3.IMNM dividend
4.EEM dividend 9.GLD dividend   4.LITE dividend
5.IBIT dividend 10.TLT dividend   5.VTYX dividend

Want more examples? IVOO Dividend | IVR Dividend