Cognizant Technology Solutions is raising its quarterly dividend by 6.5% and targeting $1.6 billion in total shareholder returns this year, signaling confidence in its cash flow despite a shifting landscape for IT services.
The board of the Teaneck, N.J.-based professional services firm approved an increase in the quarterly payout to $0.33 per share, up from the previous $0.31. This adjustment brings the annualized dividend to $1.32, representing a yield of approximately 1.77% based on the recent closing stock price of $74.50.
Shareholders of record by Feb. 18 will receive the payment on Feb. 26. The move follows a period of aggressive capital management in which Cognizant spent $1.3 billion to repurchase 17.4 million shares during the previous year.
Capital Allocation Strategy
Management expects to return a total of $1.6 billion to investors throughout the current fiscal year. According to the company's announcement, this strategy includes an estimated $1 billion earmarked for share repurchases, with the remainder distributed through the newly increased dividend payments.
Comments (0)
No comments yet. Be the first!