CDW Co. (NASDAQ:CDW) Increases Dividend to $0.63 Per Share

CDW Co. (NASDAQ:CDW) announced a quarterly dividend on Wednesday, October 30th, RTT News reports. Shareholders of record on Monday, November 25th will be given a dividend of 0.625 per share by the information technology services provider on Tuesday, December 10th. This represents a $2.50 dividend on an annualized basis and a yield of 1.22%. This is a positive change from CDW’s previous quarterly dividend of $0.62.

CDW has raised its dividend by an average of 15.8% annually over the last three years. CDW has a payout ratio of 22.8% meaning its dividend is sufficiently covered by earnings. Analysts expect CDW to earn $10.25 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 24.2%.

CDW Stock Performance

Shares of CDW stock traded down $15.58 during trading on Wednesday, hitting $204.32. 370,591 shares of the company’s stock were exchanged, compared to its average volume of 819,862. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.02 and a current ratio of 1.13. CDW has a 52-week low of $185.04 and a 52-week high of $263.37. The business has a 50-day simple moving average of $221.46 and a 200-day simple moving average of $224.17. The stock has a market capitalization of $27.46 billion, a price-to-earnings ratio of 25.51, a PEG ratio of 3.42 and a beta of 1.03.

CDW (NASDAQ:CDW) last posted its quarterly earnings results on Wednesday, July 31st. The information technology services provider reported $2.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.39 by ($0.05). CDW had a net margin of 5.29% and a return on equity of 62.22%. The company had revenue of $5.42 billion during the quarter, compared to analysts’ expectations of $5.43 billion. During the same quarter last year, the company earned $2.43 earnings per share. CDW’s revenue for the quarter was down 3.6% on a year-over-year basis. On average, research analysts forecast that CDW will post 9.4 EPS for the current year.

Insider Buying and Selling at CDW

In other CDW news, insider Christine A. Leahy bought 1,200 shares of CDW stock in a transaction on Thursday, August 1st. The stock was bought at an average price of $216.15 per share, with a total value of $259,380.00. Following the completion of the acquisition, the insider now owns 102,200 shares in the company, valued at $22,090,530. The trade was a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.90% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

CDW has been the topic of several research analyst reports. JPMorgan Chase & Co. downgraded CDW from an “overweight” rating to a “neutral” rating and cut their price objective for the company from $260.00 to $235.00 in a report on Monday. Barclays cut their price objective on CDW from $232.00 to $229.00 and set an “equal weight” rating on the stock in a research report on Thursday, August 1st. Stifel Nicolaus raised their target price on shares of CDW from $250.00 to $260.00 and gave the company a “buy” rating in a report on Wednesday, July 17th. Finally, Citigroup downgraded CDW from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $250.00 to $245.00 in a report on Tuesday, October 1st. Four research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, CDW has a consensus rating of “Hold” and an average price target of $250.71.

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.