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 Wed 4:16 PM ET):
| Under Armour, Inc. Class A (UAA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 7.17 |
7.21 |
7.22 |
+0.13 |
11.5M |
- |
3.0B |
UAA Dividend-Like Income Using Covered Calls
With UAA at 7.22, 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% |
0.22 |
0.1 |
| 5% |
0.36 |
0.1 |
| 10% |
0.72 |
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 |
| Aug 15 |
8.00 |
0.20 |
45 |
0.4 |
0.79 (10.9%) |
| Oct 17 |
7.50 |
0.65 |
108 |
0.6 |
0.29 (4.0%) |
| 5% Yield On UAA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
8.00 |
0.20 |
45 |
0.4 |
0.79 (10.9%) |
| Oct 17 |
7.50 |
0.65 |
108 |
0.6 |
0.29 (4.0%) |
| 10% Yield On UAA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
8.00 |
0.20 |
45 |
0.4 |
0.79 (10.9%) |
| Oct 17 |
7.50 |
0.65 |
108 |
0.6 |
0.29 (4.0%) |
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