PC Connection, Inc. (NASDAQ:CNXN) Plans Quarterly Dividend of $0.20

Key Points

• Quarterly dividend: PC Connection declared a $0.20 per‑share quarterly dividend payable May 29 to holders of record on May 12 (ex‑dividend May 12), equal to an $0.80 annualized payment and a ~1.2% yield.
• Dividend coverage looks strong, with a current payout ratio of 20.7% and analysts projecting $4.20 in EPS next year (implying an expected future payout ratio of ~19%).
• Recent results beat estimates—Q earnings were $0.77 vs. $0.62 expected and revenue was $721.9M vs. $698.8M—and the stock trades with a market cap of about $1.67B and a P/E of 20.09.

PC Connection, Inc. (NASDAQ:CNXN - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Stockholders of record on Tuesday, May 12th will be paid a dividend of 0.20 per share on Friday, May 29th. This represents a c) annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, May 12th.

PC Connection has a dividend payout ratio of 20.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect PC Connection to earn $4.20 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 19.0%.

PC Connection Price Performance

NASDAQ CNXN opened at $66.39 on Thursday. The company has a market capitalization of $1.67 billion, a P/E ratio of 20.09, a PEG ratio of 1.69 and a beta of 0.83. PC Connection has a 12 month low of $54.97 and a 12 month high of $71.17. The company's 50 day simple moving average is $60.98 and its 200 day simple moving average is $60.11.

PC Connection (NASDAQ:CNXN - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.15. The firm had revenue of $721.87 million for the quarter, compared to the consensus estimate of $698.84 million. PC Connection had a return on equity of 9.87% and a net margin of 2.91%. On average, analysts anticipate that PC Connection will post 3.77 earnings per share for the current year.

About PC Connection

PC Connection, Inc NASDAQ: CNXN, now operating under the trade name Connection, is a value-added provider of information technology solutions founded in 1982 and headquartered in Merrimack, New Hampshire. The company offers a broad portfolio of hardware and software products sourced from leading technology vendors, alongside professional services designed to help organizations design, deploy and maintain IT environments.

Connection's product offerings encompass desktop and notebook computers, servers and storage systems, networking and cybersecurity solutions, as well as cloud and virtualization technologies.

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