CDW Corporation (NASDAQ:CDW) to Issue $0.63 Quarterly Dividend

Key Points

• CDW declared a quarterly dividend of $0.63 per share, payable September 10 to shareholders of record on August 25. The dividend implies an annualized payout of $2.52 and a yield of approximately 1.8%.
• CDW’s second-quarter results beat expectations, with revenue up 10% year over year to $6.57 billion and EPS of $2.91 versus the $2.80 consensus estimate. Management also raised its 2026 outlook, supported by growth in government, international sales and AI infrastructure demand.
• Despite the earnings beat, investors focused on weaker profitability and cash flow: gross margin fell to 20.1%, while first-half adjusted free cash flow declined to $278.4 million from $458.9 million a year earlier.

CDW Corporation (NASDAQ:CDW - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Shareholders of record on Tuesday, August 25th will be given a dividend of 0.63 per share by the information technology services provider on Thursday, September 10th. This represents a c) annualized dividend and a yield of 1.8%. The ex-dividend date is Tuesday, August 25th.

CDW has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 10 years. CDW has a dividend payout ratio of 24.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect CDW to earn $11.27 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 22.4%.

CDW Stock Performance

Shares of NASDAQ CDW traded down $13.90 during midday trading on Wednesday, reaching $140.10. 5,810,704 shares of the stock were exchanged, compared to its average volume of 1,913,677. The firm has a market cap of $17.90 billion, a price-to-earnings ratio of 17.04, a PEG ratio of 1.96 and a beta of 0.96. CDW has a twelve month low of $97.12 and a twelve month high of $171.55. The firm has a 50-day simple moving average of $134.75 and a two-hundred day simple moving average of $127.52. The company has a quick ratio of 1.06, a current ratio of 1.16 and a debt-to-equity ratio of 1.81.

CDW (NASDAQ:CDW - Get Free Report) last posted its earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share for the quarter, beating the consensus estimate of $2.80 by $0.11. CDW had a net margin of 4.70% and a return on equity of 49.67%. The firm had revenue of $6.57 billion during the quarter, compared to analyst estimates of $6.21 billion. During the same period in the previous year, the firm earned $2.60 EPS. The business's quarterly revenue was up 10.0% on a year-over-year basis. As a group, analysts anticipate that CDW will post 10.21 EPS for the current fiscal year.

Trending Headlines about CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported second-quarter revenue of $6.57 billion, up 10% year over year and ahead of the $6.21 billion consensus estimate. Adjusted earnings of $2.91 per share also exceeded expectations of $2.80, helped by broad technology demand, AI infrastructure spending and international growth. CDW Q2 Earnings and Sales Beat
• Positive Sentiment: Management raised its 2026 outlook, calling for mid-single-digit gross-profit growth and adjusted EPS growth at the high end of the high-single-digit range. Government sales increased 13.6%, while international sales rose 22.9%, providing additional growth support.
• Positive Sentiment: The board declared a quarterly dividend of $0.630 per share, payable September 10 to shareholders of record on August 25. CDW Declares Quarterly Cash Dividend
• Neutral Sentiment: Chief Financial Officer Albert J. Miralles announced a planned retirement and leadership transition. The change introduces an execution and continuity consideration, although no immediate operational disruption was reported. CDW Announces CFO Retirement
• Negative Sentiment: Gross-profit margin declined to 20.1% from 20.8% and was below Wall Street expectations. Gross profit rose only 6.3%, while operating income increased 2.0%, indicating that larger, lower-margin infrastructure projects are diluting incremental profitability. Management also said gross profit could be roughly flat sequentially in the third quarter. CDW Shares Fall on Margin Miss
• Negative Sentiment: First-half adjusted free cash flow fell to $278.4 million from $458.9 million a year earlier as inventory and working-capital investment increased. The margin pressure and weaker cash conversion outweighed the earnings beat, driving the negative investor reaction. CDW Slides as Margin Pressure Outweighs Earnings Beat

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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