Cognizant Technology Solutions Corporation
CTSHTechnology · Stock · quarterly payer
Forward Yield
2.95%
Annual Dividend
$1.32
Payout Ratio
27%
5-Yr Growth
7.1%
Ex-Date
May 18, 2026
Frequency
Quarterly
Summary
As of July 2026, Cognizant Technology Solutions Corporation (CTSH) yields 2.95% ($1.32 per share annually), with a blended fair-value estimate of $79.83 — +78% upside, so it screens as undervalued. Dividend safety grade: A (81/100). 6 years of dividend growth.
Is CTSH a good dividend stock?
YesCognizant Technology Solutions Corporation (CTSH) pays a quarterly dividend yielding 2.95% ($1.32/yr), with 6 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- Never cut its dividend on record
- Comfortable payout ratio (27%)
- Strong 7.1% 5-yr dividend growth
- Top-tier dividend safety score
Risks
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 2.95%
- Payout Ratio
- 27%
- Annual Dividend
- $1.32
- 5-Yr Avg Growth
- 7.1%
- Ex-Dividend Date
- May 18, 2026
- Years of Growth
- 6
- Frequency
- quarterly
- Beta
- 0.86
- Market Cap
- $21.1B
- P/E Ratio
- 9.7
- 5-Yr Total Return
- -41%
- 52-Week Range
- $37.08 – $87.03
- Dividend Safety
- A · 81/100
- Ever Cut?
- No
Frequently Asked Questions
CTSH Price — Last 12 Months
Daily close
Price Return
1 Year
-38%
3 Years
-37%
5 Years
-41%
52-Week Range
$37.08 – $87.03
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is CTSH worth?
Undervaluedlow confidenceOur blended fair-value estimate for Cognizant Technology Solutions Corporation is $79.83 per share, versus a market price of $44.77. That implies 78% of upside — a margin of safety of about 44%.
Fair Value
$79.83
Current Price
$44.77
Upside
+78%
Margin of Safety
44%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 8.4% — below our estimate, leaving room for upside if the business executes.
Assumptions: 8.6% discount rate (CAPM), 8.4% stage-1 growth, 2.5% terminal growth, $4.61 EPS, $1.32 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
CTSH Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| May 18, 2026 | — | $0.3300 | regular |
| Feb 18, 2026 | — | $0.3300 | regular |
| Nov 18, 2025 | — | $0.3100 | regular |
| Aug 18, 2025 | — | $0.3100 | regular |
| May 19, 2025 | — | $0.3100 | regular |
| Feb 18, 2025 | — | $0.3100 | regular |
| Nov 19, 2024 | — | $0.3000 | regular |
| Aug 20, 2024 | — | $0.3000 | regular |
| May 17, 2024 | — | $0.3000 | regular |
| Feb 16, 2024 | — | $0.3000 | regular |
| Nov 20, 2023 | — | $0.2900 | regular |
| Aug 18, 2023 | — | $0.2900 | regular |
| May 18, 2023 | — | $0.2900 | regular |
| Feb 16, 2023 | — | $0.2900 | regular |
Income Calculator
At $1.32 / yr per share
