CDW Co. (NASDAQ:CDW) Announces $0.62 Quarterly Dividend

CDW Co. (NASDAQ:CDW) declared a quarterly dividend on Wednesday, May 1st, RTT News reports. Shareholders of record on Friday, May 24th will be given a dividend of 0.62 per share by the information technology services provider on Tuesday, June 11th. This represents a $2.48 annualized dividend and a dividend yield of 1.16%.

CDW has increased its dividend by an average of 15.8% per year over the last three years and has increased its dividend annually for the last 10 consecutive years. CDW has a dividend payout ratio of 21.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect CDW to earn $10.75 per share next year, which means the company should continue to be able to cover its $2.48 annual dividend with an expected future payout ratio of 23.1%.

CDW Price Performance

NASDAQ CDW opened at $214.61 on Thursday. The stock has a market capitalization of $28.84 billion, a P/E ratio of 26.50, a P/E/G ratio of 2.74 and a beta of 1.09. CDW has a 1 year low of $162.59 and a 1 year high of $263.37. The business’s fifty day moving average is $246.81 and its two-hundred day moving average is $229.16. The company has a debt-to-equity ratio of 2.46, a quick ratio of 1.11 and a current ratio of 1.23.

CDW (NASDAQ:CDW) last posted its quarterly earnings results on Wednesday, February 7th. The information technology services provider reported $2.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $0.01. The company had revenue of $5.02 billion for the quarter, compared to analysts’ expectations of $5.32 billion. CDW had a return on equity of 73.93% and a net margin of 5.17%. The firm’s revenue was down 7.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.40 earnings per share. On average, research analysts forecast that CDW will post 9.89 earnings per share for the current fiscal year.

CDW declared that its board has initiated a stock buyback plan on Wednesday, February 7th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to reacquire up to 2.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

Several research firms have issued reports on CDW. Evercore ISI upped their price target on CDW from $250.00 to $300.00 and gave the company an “outperform” rating in a report on Friday, March 22nd. Barclays boosted their target price on shares of CDW from $219.00 to $261.00 and gave the company an “equal weight” rating in a research note on Thursday, February 8th. Citigroup boosted their target price on shares of CDW from $255.00 to $295.00 and gave the company a “buy” rating in a research note on Thursday, April 4th. Finally, JPMorgan Chase & Co. boosted their target price on shares of CDW from $267.00 to $280.00 and gave the company an “overweight” rating in a research note on Thursday, April 11th. Three research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat, CDW has an average rating of “Moderate Buy” and a consensus target price of $242.67.

About CDW

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.