CTSH Dividend

Although CTSH has a dividend of 0.20 with an ex-dividend date of Aug 21, you can sell covered calls on COGNIZANT TECH SOLUTION 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):

COGNIZANT TECH SOLUTION (CTSH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
74.22	75.89	74.91	-0.65	3.1M	30	44B

CTSH Dividend-Like Income Using Covered Calls

With CTSH at 74.91, here's a table showing how big the annual "dividend" (ie. 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%	2.25	0.6
5%	3.75	1.0
10%	7.49	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 24	76.00	0.10	5	2.0	0.11 (0.1%)
Aug 31	77.00	0.10	12	0.8	1.11 (1.5%)

5% Yield On CTSH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	76.00	0.10	5	2.0	0.11 (0.1%)
Aug 31	76.50	0.20	12	1.7	0.61 (0.8%)

10% Yield On CTSH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 31	76.00	0.30	12	2.5	0.11 (0.1%)
Sep 7	76.00	0.45	19	2.4	0.11 (0.1%)

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Top 10 Open Interest For Sep 21 Expiration				Top 5 High Yield
1.	EEM dividend	6.	GE dividend	1.	COTY dividend
2.	SPY dividend	7.	GLD dividend	2.	MOMO dividend
3.	SPX dividend	8.	FB dividend	3.	UVXY dividend
4.	QQQ dividend	9.	IWM dividend	4.	AKRX dividend
5.	XLF dividend	10.	GDX dividend	5.	LB dividend

Want more examples? CTS Dividend | CTSO Dividend