Cognizant Technology Solutions (CTSH) will start paying a quarterly dividend of $0.15 per share.

The company has approved a plan to return $3.4 billion to shareholders over the next two years through a combination of share repurchases and dividends. As part of this plan, the Company expects to commence a $1.5 billion accelerated share repurchase program in the first quarter of 2017, initiate a regular quarterly cash dividend of $0.15 per share commencing in the second quarter of 2017, and repurchase shares of $1.2 billion in the open market during 2017 and 2018.

"We are pleased to announce a comprehensive program that will enhance total shareholder return for Cognizant," said Karen McLoughlin, Chief Financial Officer. "Today's actions reflect the Board's confidence in the Company's long-term strategy, which will drive sustainable revenue and earnings growth and greatly accelerate capital return, while ensuring that Cognizant maintains the ability to invest in the business and financial strength and flexibility."

The $0.60 per share annual dividend will translate into an estimated yield of 1.1% at the current stock price of $56.45.

Cognizant Technology Solutions Corporation is a provider of information technology, consulting and business process services.