UA Dividend Type Payments

Under Armour, Inc. Class C dividend

Although UA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Under Armour, Inc. Class 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):

Under Armour, Inc. Class C (UA)
Bid Ask Last Change Volume P/E Market Cap
4.65 4.66 4.66 +0.07 4.6M - 2.0B

UA Dividend-Like Income Using Covered Calls

With UA at 4.66, 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% 0.14 0.0
5% 0.23 0.1
10% 0.47 0.1

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
Nov 21 5.00 0.20 40 0.5 0.34 (7.3%)
Jan 16 5.00 0.40 96 0.4 0.34 (7.3%)
5% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 5.00 0.20 40 0.5 0.34 (7.3%)
Jan 16 5.00 0.40 96 0.4 0.34 (7.3%)
10% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 5.00 0.20 40 0.5 0.34 (7.3%)
Jan 16 5.00 0.40 96 0.4 0.34 (7.3%)

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