VOD Dividend

Vodafone Group Plc - American Depositary Shares each representing ten Or dividend

Although VOD has a dividend of 0.25 with an ex-dividend date of Jun 6, you can sell covered calls on Vodafone Group Plc - American Depositary Shares each representing ten Or 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):

Vodafone Group Plc - American Depositary Shares each representing ten Or (VOD)
Bid Ask Last Change Volume P/E Market Cap
10.35 10.47 10.47 -0.07 25.2M - 35B

VOD Dividend-Like Income Using Covered Calls

With VOD at 10.47, 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% 0.31 0.1
5% 0.52 0.1
10% 1.05 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 VOD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 10.50 0.10 15 0.7 0.03 (0.3%)
Oct 17 11.00 0.40 148 0.3 0.53 (5.1%)
5% Yield On VOD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 10.50 0.10 15 0.7 0.03 (0.3%)
Oct 17 11.00 0.40 148 0.3 0.53 (5.1%)
10% Yield On VOD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 10.50 0.10 15 0.7 0.03 (0.3%)
Jun 20 10.50 0.20 29 0.7 0.03 (0.3%)

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Want more examples? VOC Dividend | VOE Dividend