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 Fri 4:16 PM ET):

UiPath, Inc. Class A (PATH)
Bid Ask Last Change Volume P/E Market Cap
13.47 13.50 13.43 -0.74 8.5M 51 7.8B

PATH Dividend-Like Income Using Covered Calls

With PATH at 13.43, 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% 1.34 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
Mar 7 13.50 0.48 15 3.2 0.00 (0.0%)
Mar 14 13.50 1.06 22 4.8 0.00 (0.0%)
5% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 7 13.50 0.48 15 3.2 0.00 (0.0%)
Mar 14 13.50 1.06 22 4.8 0.00 (0.0%)
10% Yield On PATH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 7 13.50 0.48 15 3.2 0.00 (0.0%)
Mar 14 13.50 1.06 22 4.8 0.00 (0.0%)

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