VEA Dividend Type Payments

Vanguard FTSE Developed Markets ETF dividend

Although VEA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard FTSE Developed Markets 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 FTSE Developed Markets ETF (VEA)
Bid Ask Last Change Volume P/E Market Cap
64.42 64.81 64.56 -0.36 18.7M - 28B

VEA Dividend-Like Income Using Covered Calls

With VEA at 64.56, 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% 1.94 0.5
5% 3.23 0.9
10% 6.46 1.8

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 VEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 65.00 2.30 157 1.5 0.19 (0.3%)
Feb 20 66.00 0.35 39 0.9 1.19 (1.8%)
5% Yield On VEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 65.00 2.30 157 1.5 0.19 (0.3%)
Feb 20 66.00 0.35 39 0.9 1.19 (1.8%)

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

 
 
Top 10 Open Interest For Jan 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.AAPL dividend   1.SGML dividend
2.IBIT dividend 7.SPY dividend   2.TE dividend
3.INTC dividend 8.NFLX dividend   3.BHVN dividend
4.TLT dividend 9.QQQ dividend   4.ERAS dividend
5.SLV dividend 10.GLD dividend   5.AAOI dividend

Want more examples? VDE Dividend | VECO Dividend