CDW Co. Declares Quarterly Dividend of $0.63 (NASDAQ:CDW)

CDW Co. (NASDAQ:CDW) announced a quarterly dividend on Wednesday, May 7th, RTT News reports. Shareholders of record on Monday, May 26th will be paid a dividend of 0.625 per share by the information technology services provider on Tuesday, June 10th. This represents a $2.50 annualized dividend and a dividend yield of 1.42%.

CDW has increased its dividend by an average of 13.5% 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 24.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect CDW to earn $10.05 per share next year, which means the company should continue to be able to cover its $2.50 annual dividend with an expected future payout ratio of 24.9%.

CDW Stock Up 7.1 %

Shares of NASDAQ:CDW opened at $175.49 on Thursday. The company has a market capitalization of $23.12 billion, a P/E ratio of 22.02, a P/E/G ratio of 3.21 and a beta of 0.91. The company has a quick ratio of 1.24, a current ratio of 1.35 and a debt-to-equity ratio of 2.38. The stock’s fifty day simple moving average is $160.82 and its 200-day simple moving average is $178.24. CDW has a 52-week low of $137.31 and a 52-week high of $241.26.

CDW (NASDAQ:CDW) last posted its quarterly earnings data on Wednesday, May 7th. The information technology services provider reported $2.15 earnings per share for the quarter, beating analysts’ consensus estimates of $1.96 by $0.19. The business had revenue of $5.20 billion during the quarter, compared to analyst estimates of $4.93 billion. CDW had a net margin of 5.13% and a return on equity of 55.42%. The company’s revenue was up 6.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.92 earnings per share. As a group, equities research analysts forecast that CDW will post 9.41 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

CDW has been the topic of a number of research analyst reports. JPMorgan Chase & Co. decreased their price target on CDW from $222.00 to $175.00 and set a “neutral” rating on the stock in a research note on Thursday, April 17th. Citigroup lowered their target price on shares of CDW from $220.00 to $160.00 and set a “neutral” rating for the company in a report on Monday, April 14th. Barclays increased their price target on shares of CDW from $201.00 to $223.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 6th. Finally, Morgan Stanley upped their price target on CDW from $193.00 to $201.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 6th. Four investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat, CDW has a consensus rating of “Moderate Buy” and an average price target of $217.38.

CDW announced that its Board of Directors has approved a share buyback plan on Wednesday, February 5th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the information technology services provider to buy up to 2.7% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

CDW Company Profile

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.