PATH Dividend Type Payments
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 4:16 PM ET):
UiPath, Inc. Class A (PATH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
13.31 | 13.33 | 13.33 | +0.11 | 5.2M | - | 7.1B |
PATH Dividend-Like Income Using Covered Calls
With PATH at 13.33, 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% | 0.67 | 0.2 |
10% | 1.33 | 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 | 0.19 | 24 | 0.8 | 0.17 (1.3%) | |
Aug 8 | 13.50 | 0.41 | 31 | 1.3 | 0.17 (1.3%) |
5% Yield On PATH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 13.50 | 0.19 | 24 | 0.8 | 0.17 (1.3%) | |
Aug 8 | 13.50 | 0.41 | 31 | 1.3 | 0.17 (1.3%) |
10% Yield On PATH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 1 | 13.50 | 0.19 | 24 | 0.8 | 0.17 (1.3%) | |
Aug 8 | 13.50 | 0.41 | 31 | 1.3 | 0.17 (1.3%) |
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Want more examples? PASG Dividend | PATK Dividend