CTSH Dividend

Although CTSH has a dividend of 0.31 with an ex-dividend date of Aug 18, 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 Mon 2:55 PM ET):

Cognizant Technology Solutions Corporation - Class A (CTSH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
70.93	70.95	70.94	+0.35	2.5M	14	35B

CTSH Dividend-Like Income Using Covered Calls

With CTSH at 70.94, 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%	2.13	0.6
5%	3.55	1.0
10%	7.09	1.9

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	72.50	0.50	12	4.2	1.55 (2.2%)
Oct 17	72.50	2.15	75	2.9	1.55 (2.2%)

5% Yield On CTSH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	72.50	0.50	12	4.2	1.55 (2.2%)
Oct 17	72.50	2.15	75	2.9	1.55 (2.2%)

10% Yield On CTSH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	72.50	0.50	12	4.2	1.55 (2.2%)
Oct 17	72.50	2.15	75	2.9	1.55 (2.2%)

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Want more examples? CTS Dividend | CTSO Dividend