VSS Dividend Type Payments
Although VSS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard FTSE All-Wld ex-US SmCp Idx ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:55 AM ET):
| Vanguard FTSE All-Wld ex-US SmCp Idx ETF (VSS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 138.31 |
138.44 |
138.37 |
+0.40 |
32K |
- |
0.0B |
VSS Dividend-Like Income Using Covered Calls
With VSS at 138.37, 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% |
4.15 |
1.1 |
| 5% |
6.92 |
1.9 |
| 10% |
13.84 |
3.8 |
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 VSS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
138.00 |
1.95 |
38 |
4.0 |
0.00 (0.0%) |
| 5% Yield On VSS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
138.00 |
1.95 |
38 |
4.0 |
0.00 (0.0%) |
| 10% Yield On VSS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
138.00 |
1.95 |
38 |
4.0 |
0.00 (0.0%) |
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