CDW Corporation (NASDAQ:CDW) Plans Quarterly Dividend of $0.68

Key Points

• CDW raised its quarterly dividend 7.9% to $0.68 per share, payable December 10 to shareholders of record November 25. That equates to $2.72 annualized and a 1.6% yield.
• The company reported quarterly earnings of $3.26 per share, beating analyst expectations of $2.98; revenue of $6.75 billion also topped estimates and rose 17.7% year over year.
• CDW has raised its dividend for 10 consecutive years, and its 24.3% payout ratio indicates the dividend is well covered by earnings.

CDW Corporation (NASDAQ:CDW - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Shareholders 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 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 increased its dividend by an average of 0.1% annually over the last three years and has raised 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 Trading Up 12.7%

Shares of NASDAQ CDW traded up $18.98 on Wednesday, reaching $168.75. 3,434,041 shares of the company traded hands, compared to its average volume of 1,828,463. CDW has a fifty-two week low of $97.12 and a fifty-two week high of $172.47. The company has a 50 day moving average of $147.70 and a 200 day moving average of $133.29. The company has a current ratio of 1.17, a quick ratio of 1.05 and a debt-to-equity ratio of 1.97. The stock has a market capitalization of $21.10 billion, a PE ratio of 20.28, a P/E/G ratio of 1.97 and a beta of 0.92.

CDW (NASDAQ:CDW - Get Free Report) last issued its earnings results on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share for the quarter, topping the consensus estimate of $2.98 by $0.28. The business had revenue of $6.75 billion for the quarter, compared to analyst estimates of $6.19 billion. CDW had a return on equity of 50.61% and a net margin of 4.60%. The business's quarterly revenue was up 17.7% on a year-over-year basis. During the same period last year, the company posted $2.71 EPS. On average, equities research analysts forecast that CDW will post 10.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other CDW news, insider Elizabeth Connelly sold 26,695 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the completion of the sale, the insider owned 34,215 shares in the company, valued at $4,708,668.30. This trade represents a 43.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.82% of the company's stock.

Hedge Funds Weigh In On CDW

Several institutional investors and hedge funds have recently made changes to their positions in CDW. BlackRock Inc. acquired a new position in CDW during the 2nd quarter valued at about $2,143,082,000. Pzena Investment Management LLC increased its stake in shares of CDW by 27.1% in the third quarter. Pzena Investment Management LLC now owns 3,353,465 shares of the information technology services provider's stock valued at $429,780,000 after purchasing an additional 714,565 shares during the period. Jupiter Topco LLC acquired a new position in shares of CDW during the second quarter valued at $300,073,000. Alyeska Investment Group L.P. raised its holdings in CDW by 197.1% during the second quarter. Alyeska Investment Group L.P. now owns 1,854,952 shares of the information technology services provider's stock worth $260,880,000 after purchasing an additional 1,230,517 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in shares of CDW during the 2nd quarter valued at about $255,058,000. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

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.

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