VBK Dividend Type Payments
Although VBK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Small-Cap Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Vanguard Small-Cap Growth ETF (VBK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 316.00 | 323.09 | 321.90 | +1.74 | 173K | - | 10B |
VBK Dividend-Like Income Using Covered Calls
With VBK at 321.90, 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% | 9.66 | 2.6 |
| 5% | 16.10 | 4.4 |
| 10% | 32.19 | 8.8 |
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 VBK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 18 | 325.00 | 16.10 | 158 | 10.2 | 1.91 (0.6%) | |
| Feb 20 | 325.00 | 5.00 | 40 | 12.5 | 1.91 (0.6%) | |
| 5% Yield On VBK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 18 | 325.00 | 16.10 | 158 | 10.2 | 1.91 (0.6%) | |
| Feb 20 | 325.00 | 5.00 | 40 | 12.5 | 1.91 (0.6%) | |
| 10% Yield On VBK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 18 | 325.00 | 16.10 | 158 | 10.2 | 1.91 (0.6%) | |
| Feb 20 | 325.00 | 5.00 | 40 | 12.5 | 1.91 (0.6%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | TMQ dividend | |
| 2. | IBIT dividend | 7. | SPY dividend | 2. | TVTX dividend | |
| 3. | INTC dividend | 8. | NFLX dividend | 3. | OKLO dividend | |
| 4. | TLT dividend | 9. | GLD dividend | 4. | ENVX dividend | |
| 5. | SLV dividend | 10. | QQQ dividend | 5. | HTZ dividend | |
Want more examples? VB Dividend | VBND Dividend
