UAA Dividend Type Payments
Although UAA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Under Armour, 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 Tue 4:16 PM ET):
Under Armour, Inc. Class A (UAA) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
8.82 |
9.00 |
8.86 |
-0.05 |
13.9M |
- |
3.9B |
UAA Dividend-Like Income Using Covered Calls
With UAA at 8.86, 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% |
0.27 |
0.1 |
5% |
0.44 |
0.1 |
10% |
0.89 |
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 UAA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
10.00 |
0.05 |
32 |
0.2 |
1.00 (11.3%) |
Oct 4 |
9.00 |
0.10 |
4 |
2.5 |
0.00 (0.0%) |
5% Yield On UAA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
10.00 |
0.05 |
32 |
0.2 |
1.00 (11.3%) |
Oct 4 |
9.00 |
0.10 |
4 |
2.5 |
0.00 (0.0%) |
10% Yield On UAA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
9.00 |
0.35 |
32 |
1.1 |
0.00 (0.0%) |
Oct 4 |
9.00 |
0.10 |
4 |
2.5 |
0.00 (0.0%) |
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