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

CDW Co. (NASDAQ:CDW - Get Free Report) declared a quarterly dividend on Wednesday, May 7th, RTT News reports. Stockholders 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 1.40%. The ex-dividend date is Friday, May 23rd.

CDW has increased its dividend by an average of 13.5% annually 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. 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 Price Performance

CDW stock traded down $1.15 during mid-day trading on Friday, hitting $178.94. 1,101,293 shares of the company were exchanged, compared to its average volume of 1,200,333. The company has a market capitalization of $23.58 billion, a PE ratio of 22.45, a price-to-earnings-growth ratio of 3.21 and a beta of 0.91. The business has a fifty day moving average of $161.13 and a 200 day moving average of $177.70. CDW has a 1-year low of $137.31 and a 1-year high of $241.26. The company has a quick ratio of 1.24, a current ratio of 1.35 and a debt-to-equity ratio of 2.38.

CDW (NASDAQ:CDW - Get Free Report) last announced its earnings results on Wednesday, May 7th. The information technology services provider reported $2.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.96 by $0.19. The business had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $4.93 billion. CDW had a net margin of 5.13% and a return on equity of 55.42%. The firm's revenue for the quarter was up 6.7% on a year-over-year basis. During the same quarter last year, the company posted $1.92 EPS. As a group, sell-side analysts expect that CDW will post 9.41 earnings per share for the current year.

Insider Buying and Selling

In other CDW news, insider Christine A. Leahy sold 40,917 shares of the company's stock in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $181.42, for a total value of $7,423,162.14. Following the completion of the sale, the insider now owns 144,931 shares of the company's stock, valued at approximately $26,293,382.02. This represents a 22.02 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.90% of the stock is owned by insiders.

Wall Street Analyst Weigh In

CDW has been the subject of several research analyst reports. Morgan Stanley lifted their price objective on CDW from $193.00 to $201.00 and gave the company an "equal weight" rating in a research report on Thursday, February 6th. Citigroup upped their price target on shares of CDW from $160.00 to $180.00 and gave the stock a "neutral" rating in a research report on Thursday. JPMorgan Chase & Co. lowered their price objective on shares of CDW from $222.00 to $175.00 and set a "neutral" rating for the company in a research report on Thursday, April 17th. UBS Group decreased their price target on shares of CDW from $236.00 to $210.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Barclays dropped their price objective on shares of CDW from $223.00 to $205.00 and set an "equal weight" rating for the company in a research report on Thursday. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $216.38.

CDW declared that its Board of Directors has approved a stock repurchase program on Wednesday, February 5th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the information technology services provider to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

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.