VOT Dividend Type Payments
Although VOT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Mid-Cap Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Vanguard Mid-Cap Growth ETF (VOT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 273.88 | 277.53 | 275.19 | -4.61 | 212K | - | 5.9B |
VOT Dividend-Like Income Using Covered Calls
With VOT at 275.19, 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% | 8.26 | 2.3 |
| 5% | 13.76 | 3.8 |
| 10% | 27.52 | 7.5 |
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 VOT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 280.00 | 3.50 | 33 | 10.6 | 2.47 (0.9%) | |
| Mar 20 | 280.00 | 10.50 | 124 | 8.5 | 2.47 (0.9%) | |
| 5% Yield On VOT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 280.00 | 3.50 | 33 | 10.6 | 2.47 (0.9%) | |
| Mar 20 | 280.00 | 10.50 | 124 | 8.5 | 2.47 (0.9%) | |
| 10% Yield On VOT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 280.00 | 3.50 | 33 | 10.6 | 2.47 (0.9%) | |
| Mar 20 | 280.00 | 10.50 | 124 | 8.5 | 2.47 (0.9%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TLT dividend | 1. | IMNM dividend | |
| 2. | IBIT dividend | 7. | SPY dividend | 2. | RZLT dividend | |
| 3. | KVUE dividend | 8. | QQQ dividend | 3. | TMC dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | JANX dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | HYMC dividend | |
Want more examples? VOOV Dividend | VOX Dividend
