CDW Co. (NASDAQ:CDW) Announces $0.63 Quarterly Dividend

CDW Co. (NASDAQ:CDW) announced a quarterly dividend on Wednesday, May 7th, RTT News reports. Investors of record on Monday, May 26th will be paid a dividend of 0.625 per share by the information technology services provider on Tuesday, June 10th. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.39%. The ex-dividend date is Friday, May 23rd.

CDW has raised its dividend by an average of 13.5% per year over the last three years and has raised its dividend every year for the last 10 years. CDW has a payout ratio of 24.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect CDW to earn $10.05 per share next year, which means the company should continue to be able to cover its $2.50 annual dividend with an expected future payout ratio of 24.9%.

CDW Stock Performance

NASDAQ CDW opened at $180.09 on Friday. CDW has a twelve month low of $137.31 and a twelve month high of $241.26. The stock has a market cap of $23.73 billion, a PE ratio of 22.60, a P/E/G ratio of 3.21 and a beta of 0.91. The stock has a fifty day simple moving average of $160.97 and a 200-day simple moving average of $177.96. The company has a current ratio of 1.35, a quick ratio of 1.24 and a debt-to-equity ratio of 2.38.

CDW (NASDAQ:CDW) last posted its earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.19. CDW had a net margin of 5.13% and a return on equity of 55.42%. The firm had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $4.93 billion. During the same quarter last year, the firm earned $1.92 EPS. The firm’s revenue for the quarter was up 6.7% on a year-over-year basis. Equities analysts anticipate that CDW will post 9.41 earnings per share for the current year.

CDW announced that its board has initiated a share buyback program on Wednesday, February 5th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the information technology services provider to purchase up to 2.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Analyst Ratings Changes

A number of research firms recently issued reports on CDW. JPMorgan Chase & Co. decreased their target price on CDW from $222.00 to $175.00 and set a “neutral” rating for the company in a report on Thursday, April 17th. Morgan Stanley boosted their price objective on CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 6th. UBS Group reduced their target price on shares of CDW from $236.00 to $210.00 and set a “buy” rating on the stock in a report on Thursday. Barclays dropped their price objective on shares of CDW from $223.00 to $205.00 and set an “equal weight” rating on the stock in a research report on Thursday. Finally, Citigroup lifted their price objective on shares of CDW from $160.00 to $180.00 and gave the stock a “neutral” rating in a research report on Thursday. Four research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $216.38.

CDW Company Profile

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.