VOE Dividend Type Payments
Although VOE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Mid-Cap Value 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 Mid-Cap Value ETF (VOE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
163.78 | 171.42 | 167.13 | +1.30 | 244K | - | 4.4B |
VOE Dividend-Like Income Using Covered Calls
With VOE at 167.13, 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% | 5.01 | 1.4 |
5% | 8.36 | 2.3 |
10% | 16.71 | 4.6 |
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 Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend |
Want more examples? VOD Dividend | VONV Dividend