VIV Dividend Type Payments

Telefonica Brasil S.A. American Depositary Shares (Each representing One dividend

Although VIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Telefonica Brasil S.A. American Depositary Shares (Each representing One 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):

Telefonica Brasil S.A. American Depositary Shares (Each representing One (VIV)
Bid Ask Last Change Volume P/E Market Cap
11.87 12.08 11.98 +0.36 955K 19 3.8B

VIV Dividend-Like Income Using Covered Calls

With VIV at 11.98, 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% 0.36 0.1
5% 0.60 0.2
10% 1.20 0.3

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 VIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 12.50 0.15 45 0.3 0.42 (3.5%)
Nov 21 12.50 0.30 108 0.3 0.42 (3.5%)
5% Yield On VIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 12.50 0.15 45 0.3 0.42 (3.5%)
Nov 21 12.50 0.30 108 0.3 0.42 (3.5%)
10% Yield On VIV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 12.50 0.15 45 0.3 0.42 (3.5%)

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