VGSH Dividend Type Payments
Although VGSH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Short-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 Fri 4:16 PM ET):
| Vanguard Short-Term Treasury ETF (VGSH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 58.59 | 58.60 | 58.60 | -0.03 | 2.7M | - | 0.3B |
VGSH Dividend-Like Income Using Covered Calls
With VGSH at 58.60, 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% | 1.76 | 0.5 |
| 5% | 2.93 | 0.8 |
| 10% | 5.86 | 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:
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | CAPR dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | CORZ dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | LQDA dividend | |
| 4. | IWM dividend | 9. | INTC dividend | 4. | VG dividend | |
| 5. | IBIT dividend | 10. | QQQ dividend | 5. | RCAT dividend | |
Want more examples? VGK Dividend | VGT Dividend
