CTSH Dividend Type Payments

Cognizant Technology Solutions Corporation - Class A dividend

Although CTSH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cognizant Technology Solutions Corporation - Class A 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):

Cognizant Technology Solutions Corporation - Class A (CTSH)
Bid Ask Last Change Volume P/E Market Cap
76.20 77.51 76.73 -0.46 3.7M 16 38B

CTSH Dividend-Like Income Using Covered Calls

With CTSH at 76.73, 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% 2.30 0.6
5% 3.84 1.1
10% 7.67 2.1

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 CTSH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 77.50 2.10 23 9.1 0.00 (0.0%)
Oct 17 77.50 3.40 86 3.9 0.00 (0.0%)
5% Yield On CTSH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 77.50 2.10 23 9.1 0.00 (0.0%)
Oct 17 77.50 3.40 86 3.9 0.00 (0.0%)
10% Yield On CTSH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 77.50 2.10 23 9.1 0.00 (0.0%)
Oct 17 77.50 3.40 86 3.9 0.00 (0.0%)

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