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 1:40 PM ET):

UiPath, Inc. Class A (PATH)
Bid Ask Last Change Volume P/E Market Cap
13.24 13.25 13.24 +0.02 2.4M - 7.1B

PATH Dividend-Like Income Using Covered Calls

With PATH at 13.24, 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% 0.40 0.1
5% 0.66 0.2
10% 1.32 0.4

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
Aug 1 13.50 0.37 24 1.5 0.25 (1.9%)
Aug 8 13.50 0.43 31 1.4 0.25 (1.9%)
5% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 13.50 0.37 24 1.5 0.25 (1.9%)
Aug 8 13.50 0.43 31 1.4 0.25 (1.9%)
10% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 1 13.50 0.37 24 1.5 0.25 (1.9%)
Aug 8 13.50 0.43 31 1.4 0.25 (1.9%)

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