CTSH Dividend

Although CTSH has a dividend of 0.30 with an ex-dividend date of Nov 19, 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 Fri 4:16 PM ET):

Cognizant Technology Solutions Corporation - Class A (CTSH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
76.10	78.18	77.11	-3.66	3.8M	18	40B

CTSH Dividend-Like Income Using Covered Calls

With CTSH at 77.11, 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%	2.31	0.6
5%	3.86	1.1
10%	7.71	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
Dec 20	80.00	0.90	36	2.5	1.82 (2.4%)
Jan 17	80.00	1.60	64	2.5	1.82 (2.4%)

5% Yield On CTSH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	80.00	0.90	36	2.5	1.82 (2.4%)
Jan 17	80.00	1.60	64	2.5	1.82 (2.4%)

10% Yield On CTSH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	80.00	0.90	36	2.5	1.82 (2.4%)
Jan 17	80.00	1.60	64	2.5	1.82 (2.4%)

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Want more examples? CTS Dividend | CTSO Dividend