VOOV Dividend Type Payments

Vanguard S&P 500 Value ETF dividend

Although VOOV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard S&P 500 Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:35 PM ET):

Vanguard S&P 500 Value ETF (VOOV)
Bid Ask Last Change Volume P/E Market Cap
182.28 182.35 182.14 -1.00 59K - 0.0B

VOOV Dividend-Like Income Using Covered Calls

With VOOV at 182.14, 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% 5.46 1.5
5% 9.11 2.5
10% 18.21 5.0

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 VOOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 184.00 0.05 3 1.7 1.65 (0.9%)
Sep 19 182.00 6.10 129 4.5 0.00 (0.0%)
5% Yield On VOOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 182.00 6.10 129 4.5 0.00 (0.0%)
Dec 19 182.00 8.30 220 3.6 0.00 (0.0%)
10% Yield On VOOV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 182.00 2.90 38 6.7 0.00 (0.0%)

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