UA Dividend Type Payments

UNDERARMOUR CL C dividend

Although UA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on UNDERARMOUR CL C 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):

UNDERARMOUR CL C (UA)
Bid Ask Last Change Volume P/E Market Cap
17.00 17.63 17.31 +0.04 1.3M - 7.8B

UA Dividend-Like Income Using Covered Calls

With UA at 17.31, here's a table showing how big the annual "dividend" (ie. 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% 0.52 0.1
5% 0.87 0.2
10% 1.73 0.5

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 UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 18.50 0.05 5 1.0 0.87 (5.0%)
Oct 26 20.00 0.05 12 0.4 2.37 (13.7%)
5% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 18.50 0.05 5 1.0 0.87 (5.0%)
Oct 26 20.00 0.05 12 0.4 2.37 (13.7%)
10% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 18.50 0.05 5 1.0 0.87 (5.0%)
Oct 26 19.00 0.10 12 0.8 1.37 (7.9%)

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