CDW Corporation (NASDAQ:CDW) Declares $0.63 Quarterly Dividend

Key Points

• CDW declared a $0.63 quarterly dividend (annualized $2.52) payable June 10 with an ex-dividend date of May 22, marking the 10th consecutive year of annual increases and a low payout ratio (~24%) that suggests the dividend is well covered by earnings.
• In the quarter CDW reported EPS of $2.28 (in line with estimates) and revenue of $5.68 billion, beating expectations and rising 9.2% year-over-year.
• The stock plunged to $109 intraday on heavy volume, leaving CDW with a market cap of about $14 billion, a P/E around 13.5, and a consensus analyst price target near $155 indicating a moderate buy outlook.

CDW Corporation (NASDAQ:CDW - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Shareholders of record on Monday, May 25th will be given a dividend of 0.63 per share by the information technology services provider on Wednesday, June 10th. This represents a c) dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Friday, May 22nd.

CDW has increased its dividend payment 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% meaning its dividend is sufficiently covered by earnings. Research analysts expect CDW to earn $10.78 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 23.4%.

CDW Price Performance

Shares of CDW stock traded down $27.80 during trading on Wednesday, reaching $109.00. 6,321,308 shares of the stock traded hands, compared to its average volume of 1,721,410. The company has a market capitalization of $13.95 billion, a price-to-earnings ratio of 13.47, a P/E/G ratio of 1.86 and a beta of 1.04. The business has a fifty day simple moving average of $125.61 and a two-hundred day simple moving average of $134.85. The company has a debt-to-equity ratio of 1.77, a current ratio of 1.18 and a quick ratio of 1.10. CDW has a 52-week low of $106.00 and a 52-week high of $192.30.

CDW (NASDAQ:CDW - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The information technology services provider reported $2.28 earnings per share for the quarter, meeting analysts' consensus estimates of $2.28. The firm had revenue of $5.68 billion during the quarter, compared to analyst estimates of $5.48 billion. CDW had a return on equity of 50.66% and a net margin of 4.76%.The business's quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the business posted $2.15 earnings per share. Sell-side analysts expect that CDW will post 10.01 EPS for the current year.

Analyst Upgrades and Downgrades

CDW has been the subject of a number of research analyst reports. Evercore restated an "outperform" rating and set a $180.00 price objective on shares of CDW in a research report on Tuesday, January 20th. UBS Group cut their price objective on CDW from $190.00 to $162.00 and set a "buy" rating for the company in a research report on Thursday, February 5th. JPMorgan Chase & Co. cut their price objective on CDW from $170.00 to $160.00 and set a "neutral" rating for the company in a research report on Thursday, February 5th. Morgan Stanley raised their price objective on CDW from $141.00 to $142.00 and gave the company an "equal weight" rating in a research report on Thursday, February 5th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of CDW in a research report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, CDW has an average rating of "Moderate Buy" and a consensus price target of $155.43.

CDW Company Profile

CDW NASDAQ: CDW is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.

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