UA Dividend Type Payments

Under Armour, Inc. Class C dividend

Although UA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Under Armour, Inc. Class C to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:10 PM ET):

Under Armour, Inc. Class C (UA)
Bid Ask Last Change Volume P/E Market Cap
8.39 8.40 8.39 +0.03 2.6M - 3.6B

UA Dividend-Like Income Using Covered Calls

With UA at 8.39, 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% 0.25 0.1
5% 0.42 0.1
10% 0.84 0.2

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
Nov 15 10.00 0.10 46 0.2 1.60 (19.1%)
Jan 17 10.00 0.25 109 0.2 1.60 (19.1%)
5% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 10.00 0.10 46 0.2 1.60 (19.1%)
Jan 17 10.00 0.25 109 0.2 1.60 (19.1%)
10% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 10.00 0.50 199 0.3 1.60 (19.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Oct 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.QQQ dividend   1.ASTS dividend
2.IWM dividend 7.SLV dividend   2.APLD dividend
3.SPY dividend 8.AAPL dividend   3.UPST dividend
4.FXI dividend 9.TSLA dividend   4.BYND dividend
5.EEM dividend 10.TLT dividend   5.CAPR dividend

Want more examples? U Dividend | UAA Dividend