Cognizant Boosts Dividend in $1.6 Billion Shareholder Return Plan

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.