VT Dividend Type Payments
Although VT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Total World Stock Index ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:35 PM ET):
Vanguard Total World Stock Index ETF (VT) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
137.66 | 137.67 | 137.67 | +0.35 | 1.7M | - | 1.0B |
VT Dividend-Like Income Using Covered Calls
With VT at 137.67, 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% | 4.13 | 1.1 |
5% | 6.88 | 1.9 |
10% | 13.77 | 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 VT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 137.00 | 0.95 | 4 | 7.0 | 0.00 (0.0%) | |
Nov 21 | 137.00 | 3.20 | 39 | 6.5 | 0.00 (0.0%) |
5% Yield On VT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 137.00 | 0.95 | 4 | 7.0 | 0.00 (0.0%) | |
Nov 21 | 137.00 | 3.20 | 39 | 6.5 | 0.00 (0.0%) |
10% Yield On VT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 137.00 | 0.95 | 4 | 7.0 | 0.00 (0.0%) | |
Nov 21 | 137.00 | 3.20 | 39 | 6.5 | 0.00 (0.0%) |
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Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | AIV dividend | |
2. | IBIT dividend | 7. | INTC dividend | 2. | LAC dividend | |
3. | GLD dividend | 8. | AMZN dividend | 3. | SOC dividend | |
4. | SPY dividend | 9. | QQQ dividend | 4. | REPL dividend | |
5. | TSLA dividend | 10. | IWM dividend | 5. | BLDP dividend |
Want more examples? VSTM Dividend | VTEB Dividend