Cognizant to return $3.4 bn to shareholders

Firm opts for dividends for first time; total share repurchase to touch $5 bn

Nasdaq-listed information technology (IT) services and solutions firm Cognizant Technology Solutions on Wednesday announced it would return $3.4 billion to shareholders over the next two years, though share repurchases and dividends.

At the end of this repurchase, it would have returned $5 billion to shareholders.

The share repurchase programme comes after hedge fund activist investor Elliott Management disclosed last year that it holds 4% stake in Cognizant. It urged the company to shake up its board, to reconsider a share-repurchase programme, including dividends, to improve the share price of the company.

This is not the first time that the company