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 Mon 4:16 PM ET):

UiPath, Inc. Class A (PATH)
Bid Ask Last Change Volume P/E Market Cap
11.55 11.62 11.59 +0.19 10.3M - 6.1B

PATH Dividend-Like Income Using Covered Calls

With PATH at 11.59, 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% 0.35 0.1
5% 0.58 0.2
10% 1.16 0.3

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
Oct 3 12.00 0.26 19 1.4 0.38 (3.3%)
Oct 10 12.00 0.34 26 1.3 0.38 (3.3%)
5% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 12.00 0.26 19 1.4 0.38 (3.3%)
Oct 10 12.00 0.34 26 1.3 0.38 (3.3%)
10% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 12.00 0.26 19 1.4 0.38 (3.3%)
Oct 10 12.00 0.34 26 1.3 0.38 (3.3%)

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