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 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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