CDW Corporation (NASDAQ:CDW) Announces Dividend Increase – $0.68 Per Share

CDW Corporation (NASDAQ:CDW) announced a quarterly dividend on Wednesday, November 4th. Stockholders 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 dividend on an annualized basis and a dividend 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 payment by an average of 0.1% annually over the last three years and has increased 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 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 Price Performance

CDW opened at $168.75 on Thursday. The firm has a market capitalization of $21.10 billion, a P/E ratio of 20.28, a PEG ratio of 1.96 and a beta of 0.92. The stock has a fifty day moving average of $148.23 and a 200-day moving average of $133.47. The company has a quick ratio of 1.05, a current ratio of 1.17 and a debt-to-equity ratio of 1.97. CDW has a 12-month low of $97.12 and a 12-month high of $172.47.

CDW (NASDAQ:CDW) last issued its quarterly earnings results on Wednesday, November 4th. The information technology services provider reported $3.26 earnings per share for the quarter, beating analysts’ consensus estimates of $2.98 by $0.28. The business had revenue of $6.75 billion for the quarter, compared to the consensus estimate of $6.19 billion. CDW had a return on equity of 50.61% and a net margin of 4.60%. CDW’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.71 earnings per share. Equities analysts forecast that CDW will post 10.33 EPS for the current fiscal year.

Insider Activity at CDW

In other news, insider Elizabeth Connelly sold 26,695 shares of the company’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $137.62, for a total value of $3,673,765.90. Following the transaction, the insider directly owned 34,215 shares of the company’s stock, valued at approximately $4,708,668.30. This represents a 43.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.82% of the stock is currently owned by corporate insiders.

Institutional Trading of CDW

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in CDW in the 2nd quarter worth approximately $2,143,082,000. Pzena Investment Management LLC boosted its position in CDW by 27.1% during the third quarter. Pzena Investment Management LLC now owns 3,353,465 shares of the information technology services provider’s stock worth $429,780,000 after purchasing an additional 714,565 shares during the period. Jupiter Topco LLC acquired a new position in CDW during the second quarter valued at approximately $300,073,000. Alyeska Investment Group L.P. grew 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 valued at $260,880,000 after purchasing an additional 1,230,517 shares during the last quarter. Finally, Bank of America Corp DE acquired a new position in CDW during the second quarter valued at approximately $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.