VOE Dividend Type Payments

Vanguard Mid-Cap Value ETF dividend

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
168.27 171.76 170.14 -0.54 300K - 4.5B

VOE Dividend-Like Income Using Covered Calls

With VOE at 170.14, 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% 5.10 1.4
5% 8.51 2.3
10% 17.01 4.7

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 VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 172.00 1.20 64 1.9 0.24 (0.1%)
Sep 19 171.00 1.45 36 1.9 0.00 (0.0%)
5% Yield On VOE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 172.00 1.00 36 2.8 0.24 (0.1%)
Apr 17 171.00 6.60 246 2.4 0.00 (0.0%)

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Want more examples? VOD Dividend | VONV Dividend