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 Thu 4:16 PM ET):

Under Armour, Inc. Class C (UA)
Bid Ask Last Change Volume P/E Market Cap
7.61 7.65 7.65 +0.07 2.0M - 3.3B

UA Dividend-Like Income Using Covered Calls

With UA at 7.65, 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% 0.23 0.1
5% 0.38 0.1
10% 0.77 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
Apr 17 10.00 0.15 113 0.1 2.35 (30.7%)
Jul 18 10.00 0.40 205 0.2 2.35 (30.7%)
5% Yield On UA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 10.00 0.15 113 0.1 2.35 (30.7%)
Jul 18 10.00 0.40 205 0.2 2.35 (30.7%)

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