VGIT Dividend Type Payments
Although VGIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Intermediate-Term Treasury ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Vanguard Intermediate-Term Treasury ETF (VGIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 60.03 | 60.05 | 60.04 | +0.08 | 2.4M | - | 0.1B |
VGIT Dividend-Like Income Using Covered Calls
With VGIT at 60.04, 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% | 1.80 | 0.5 |
| 5% | 3.00 | 0.8 |
| 10% | 6.00 | 1.6 |
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:
| 3% Yield On VGIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 60.00 | 0.25 | 38 | 0.5 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | CRVS dividend | |
| 2. | IBIT dividend | 7. | SPY dividend | 2. | WYFI dividend | |
| 3. | TLT dividend | 8. | NFLX dividend | 3. | OCUL dividend | |
| 4. | INTC dividend | 9. | QQQ dividend | 4. | TLRY dividend | |
| 5. | AAPL dividend | 10. | GLD dividend | 5. | METC dividend | |
Want more examples? VG Dividend | VGK Dividend
