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 Tue 4:16 PM ET):

Vanguard Mega Cap ETF (MGC)
Bid Ask Last Change Volume P/E Market Cap
225.06 228.31 226.69 -0.49 200K - 1.0B

MGC Dividend-Like Income Using Covered Calls

With MGC at 226.69, 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% 6.80 1.9
5% 11.33 3.1
10% 22.67 6.2

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 MGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 230.00 0.75 32 2.3 1.69 (0.7%)
Oct 17 230.00 4.10 95 4.3 1.69 (0.7%)
5% Yield On MGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 230.00 4.10 95 4.3 1.69 (0.7%)
Jan 16 230.00 8.00 186 4.3 1.69 (0.7%)

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Want more examples? MGA Dividend | MGEE Dividend