VTEB Dividend Type Payments
Although VTEB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vanguard Tax-Exempt Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Vanguard Tax-Exempt Bond ETF (VTEB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.76 | 48.84 | 48.80 | -0.05 | 5.6M | - | 0.0B |
VTEB Dividend-Like Income Using Covered Calls
With VTEB at 48.80, 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% | 1.46 | 0.4 |
| 5% | 2.44 | 0.7 |
| 10% | 4.88 | 1.3 |
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 VTEB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 49.00 | 0.35 | 59 | 0.6 | 0.16 (0.3%) | |
| Jul 18 | 49.00 | 0.20 | 31 | 0.6 | 0.16 (0.3%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
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| 1. | NVDA dividend | 6. | IWM dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | RUN dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | CAPR dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | SWBI dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | QUBT dividend | |
Want more examples? VT Dividend | VTI Dividend
