PATH Dividend Type Payments

UiPath, Inc. Class A dividend

Although PATH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on UiPath, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:35 PM ET):

UiPath, Inc. Class A (PATH)
Bid Ask Last Change Volume P/E Market Cap
11.91 11.92 11.91 +0.18 9.3M 42 6.5B

PATH Dividend-Like Income Using Covered Calls

With PATH at 11.91, 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% 0.36 0.1
5% 0.60 0.2
10% 1.19 0.3

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 PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 12.00 1.15 24 4.8 0.08 (0.7%)
Apr 11 12.00 1.18 31 3.8 0.08 (0.7%)
5% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 12.00 1.15 24 4.8 0.08 (0.7%)
Apr 11 12.00 1.18 31 3.8 0.08 (0.7%)
10% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 12.00 1.15 24 4.8 0.08 (0.7%)
Apr 11 12.00 1.18 31 3.8 0.08 (0.7%)

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