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 Tue 4:16 PM ET):

UNDERARMOUR CL C (UA)
Bid Ask Last Change Volume P/E Market Cap
19.66 20.07 19.86 +0.41 1.8M - 9.0B

UA Dividend-Like Income Using Covered Calls

With UA at 19.86, 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% 0.60 0.2
5% 0.99 0.3
10% 1.99 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
Aug 24 20.50 0.05 4 1.3 0.43 (2.2%)
Aug 31 21.00 0.10 11 0.9 0.93 (4.7%)
5% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 20.50 0.05 4 1.3 0.43 (2.2%)
Aug 31 21.00 0.10 11 0.9 0.93 (4.7%)
10% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 20.50 0.05 4 1.3 0.43 (2.2%)
Aug 31 21.00 0.10 11 0.9 0.93 (4.7%)

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