Cognizant Technology SolutionsMEX:CTSH 66 Dividend Payout Ratio is 0.24 as of Mar. 2026, which is at its 10-year median of 0.24. GuruFocus rates MEX:CTSH with a GF Score™ of 66/100 and a GF Value™ of MXN1,511.52 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 864 Software companies, Cognizant Technology Solutions ranks better than 76.97% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Cognizant Technology Solutions's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.24.
The historical rank and industry rank for Cognizant Technology Solutions's Dividend Payout Ratio or its related term are showing as below:
MEX:CTSH'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.12 Med: 0.24 Max: 0.26
Current: 0.23
During the past 13 years, the highest Dividend Payout Ratio of Cognizant Technology Solutions was 0.26. The lowest was 0.12. And the median was 0.24.
MEX:CTSH's Dividend Payout Ratio is ranked better than 76.97% of 864
companies
in the Software industry
Industry Median: 0.41
vs MEX:CTSH: 0.23
During the past 13 years, the highest Trailing Annual Dividend Yield of Cognizant Technology Solutions was 3.17%. The lowest was 0.21%. And the median was 1.35%.
During the past 12 months, Cognizant Technology Solutions's average Dividends Per Share Growth Rate was 4.10% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 4.70% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 7.30% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Cognizant Technology Solutions was 25.10% per year. The lowest was 4.70% per year. And the median was 8.65% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Cognizant Technology Solutions (MEX:CTSH) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Cognizant Technology Solutions Dividend Payout Ratio Related Terms
Cognizant Technology Solutions Dividend Payout Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cognizant Technology Solutions Dividend Payout Ratio Chart
MEX:CTSH vs FISV, FIS, BR: Dividend Payout Ratio Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cognizant Technology Solutions Dividend Payout Ratio vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Dividend Payout Ratio falls into.
Cognizant Technology Solutions Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cognizant Technology Solutions (MEX:CTSH) has a Dividend Payout Ratio of 0.24 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Cognizant Technology Solutions and its competitors. This is near median its historical median of 0.24. Over the past decade, Cognizant Technology Solutions' Dividend Payout Ratio has ranged from 0.12 to 0.26. According to the industry distribution chart, Cognizant Technology Solutions ranks #199 out of 864 companies in the Software industry, placing it in the top 23%.
Is Cognizant Technology Solutions' Dividend Payout Ratio too high?
Cognizant Technology Solutions' current Dividend Payout Ratio of 0.24 is near median its 10-year median of 0.24. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 0.26. The Software industry median Dividend Payout Ratio is 0.41. Cognizant Technology Solutions' value of 0.24 is 41.5% below this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #199 out of 864 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cognizant Technology Solutions has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' Dividend Payout Ratio compare to FISV and FIS?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #199 out of 864 companies for Dividend Payout Ratio. This places Cognizant Technology Solutions in the top 23% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.41. Cognizant Technology Solutions' value of 0.24 is 41.5% below this benchmark. Historically, Cognizant Technology Solutions' own Dividend Payout Ratio has ranged from 0.12 to 0.26 over the past decade. While the company's 10-year median is 0.24 vs. the industry median of 0.41, Cognizant Technology Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.41, based on 864 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current Dividend Payout Ratio of 0.24 is 41.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current Dividend Payout Ratio is 0.24, which is near median its own 10-year median of 0.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cognizant Technology Solutions stock overvalued right now?
Based on GuruFocus' analysis, Cognizant Technology Solutions (MEX:CTSH) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,511.52, compared to a current price of MXN722.03 — trading 52.2% below its estimated fair value. The current Dividend Payout Ratio is 0.24, which is near median its 10-year median of 0.24 and 41.5% below the Software industry median of 0.41. Cognizant Technology Solutions' overall GF Score™ is 66/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current Dividend Payout Ratio is 0.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cognizant Technology Solutions (MEX:CTSH) Overvalued in 2026?
Based on GuruFocus' analysis, Cognizant Technology Solutions stock appears to be undervalued.
The current stock price of MXN722.03 is trading 52.2% below its estimated GF Value™ of MXN1,511.52.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
Dividend Payout Ratio: 0.24 (near median its 10-year median of 0.24)
GF Value™: MXN1,511.52 vs. price of MXN722.03 (52.2% below fair value)
Industry Position: 41.5% below the Software median (#199 of 864)
No single metric tells the full story. See the MEX:CTSH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cognizant Technology Solutions Business Description
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries. With most of its workforce located in India, Cognizant leverages a global delivery model that helps clients outsource their IT needs to offshore labor.
66GF Score
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