CTSH Dividend Type Payments
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 Tue 2:15 PM ET):
| Cognizant Technology Solutions Corporation - Class A (CTSH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 83.55 | 83.60 | 83.58 | -0.48 | 2.4M | 20 | 41B |
CTSH Dividend-Like Income Using Covered Calls
With CTSH at 83.58, 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% | 2.51 | 0.7 |
| 5% | 4.18 | 1.1 |
| 10% | 8.36 | 2.3 |
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 CTSH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 85.00 | 0.30 | 4 | 7.5 | 1.40 (1.7%) | |
| Jan 16 | 85.00 | 1.55 | 32 | 4.8 | 1.40 (1.7%) | |
| 5% Yield On CTSH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 85.00 | 0.30 | 4 | 7.5 | 1.40 (1.7%) | |
| Jan 16 | 85.00 | 1.55 | 32 | 4.8 | 1.40 (1.7%) | |
| 10% Yield On CTSH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 85.00 | 0.30 | 4 | 7.5 | 1.40 (1.7%) | |
| Jan 16 | 85.00 | 1.55 | 32 | 4.8 | 1.40 (1.7%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | HUT dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | ALT dividend | |
| 3. | IBIT dividend | 8. | NFLX dividend | 3. | SGML dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | SANA dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | NNE dividend | |
Want more examples? CTS Dividend | CTSO Dividend
