MGC Dividend Type Payments

Vanguard Mega Cap ETF dividend

Although MGC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Mega Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:40 PM ET):

Vanguard Mega Cap ETF (MGC)
Bid Ask Last Change Volume P/E Market Cap
206.46 206.53 206.55 -4.70 139K - 0.9B

MGC Dividend-Like Income Using Covered Calls

With MGC at 206.55, 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% 6.20 1.7
5% 10.33 2.8
10% 20.66 5.7

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 MGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 210.00 2.30 43 5.3 3.47 (1.7%)
Oct 17 210.00 9.70 226 4.3 3.47 (1.7%)
5% Yield On MGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 210.00 2.30 43 5.3 3.47 (1.7%)
Oct 17 210.00 9.70 226 4.3 3.47 (1.7%)
10% Yield On MGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 21 210.00 1.25 16 7.8 3.47 (1.7%)

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Want more examples? MGA Dividend | MGEE Dividend