CDW Corporation (NASDAQ:CDW) Announces Dividend Increase – $0.68 Per Share

CDW Corporation (NASDAQ:CDW) announced a quarterly dividend on Wednesday, November 4th. Investors of record on Wednesday, November 25th will be given a dividend of $0.68 per share by the information technology services provider on Thursday, December 10th. This represents a $2.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Wednesday, November 25th. This is a 7.9% increase from CDW’s previous quarterly dividend of $0.63.

CDW has raised its dividend by an average of 0.1% annually over the last three years and has increased its dividend annually for the last 10 consecutive years. CDW has a dividend payout ratio of 24.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect CDW to earn $11.90 per share next year, which means the company should continue to be able to cover its $2.52 annual dividend with an expected future payout ratio of 21.2%.

CDW Stock Up 12.7%

Shares of NASDAQ CDW traded up $18.98 during mid-day trading on Wednesday, reaching $168.75. 3,434,041 shares of the company traded hands, compared to its average volume of 1,828,463. The company’s fifty day moving average is $147.70 and its two-hundred day moving average is $133.29. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17. CDW has a fifty-two week low of $97.12 and a fifty-two week high of $172.47. The stock has a market cap of $21.10 billion, a PE ratio of 20.28, a price-to-earnings-growth ratio of 1.97 and a beta of 0.92.

CDW (NASDAQ:CDW) last posted its quarterly earnings data on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.98 by $0.28. The business had revenue of $6.75 billion during the quarter, compared to the consensus estimate of $6.19 billion. CDW had a net margin of 4.60% and a return on equity of 50.61%. CDW’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.71 EPS. On average, analysts expect that CDW will post 10.33 earnings per share for the current year.

Key Stories Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported adjusted earnings of $3.26 per share, above analyst estimates of about $2.98, while revenue rose 17.7% year over year to $6.755 billion, also exceeding expectations. Reports cited enterprise AI adoption and broad-based demand, including for AI infrastructure, as key growth drivers. CDW Q3 earnings beat, revenue growth and margin pressure
• Positive Sentiment: The board raised the quarterly dividend 7.9% to $0.68 per share, payable December 10 to shareholders of record November 25. The increase signals continued cash returns to shareholders. CDW raises quarterly dividend by 7.9%
• Neutral Sentiment: A Hennessy Focus Fund investor letter described CDW as a “good but not great” business, suggesting some investors remain cautious about its longer-term appeal; the available report excerpt provides limited detail on the fund’s reasoning. Hennessy fund reevaluates CDW
• Negative Sentiment: Despite the sales and earnings beat, margin compression and rising expenses remain risks to profitability if costs outpace revenue growth. CDW earnings report discusses margin compression

About CDW

CDW Corporation (NASDAQ: CDW) is a provider of technology products and services for business, government, education and healthcare organizations. The company helps customers plan, procure, implement and manage information technology solutions from leading hardware, software and cloud vendors.

Its offerings include computers, servers, networking equipment, data-storage systems, cybersecurity products, collaboration tools, software licensing and cloud solutions. CDW also provides professional and managed services, including technology consulting, infrastructure deployment, cloud management, security support and lifecycle services.

Founded in 1984 as Computer Discount Warehouse, CDW serves customers primarily in the United States, Canada and the United Kingdom through sales teams, digital channels and technology partnerships.