CDW Co. (NASDAQ:CDW) Announces Dividend Increase - $0.63 Per Share

CDW Co. (NASDAQ:CDW - Get Free Report) declared 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 dividend yield of 1.28%. This is a boost from CDW's previous quarterly dividend of $0.62.

CDW has increased its dividend payment by an average of 15.8% per year over the last three years. CDW has a dividend payout ratio of 22.8% indicating that its dividend is sufficiently covered by earnings. Equities research 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 Down 11.3 %

Shares of NASDAQ:CDW traded down $24.84 during mid-day trading on Wednesday, hitting $195.06. 3,017,816 shares of the company traded hands, compared to its average volume of 832,468. The stock has a 50-day moving average price of $221.46 and a two-hundred day moving average price of $224.17. CDW has a 12-month low of $185.04 and a 12-month high of $263.37. The stock has a market cap of $26.22 billion, a P/E ratio of 24.35, a P/E/G ratio of 3.42 and a beta of 1.03. The company has a current ratio of 1.13, a quick ratio of 1.02 and a debt-to-equity ratio of 2.03.

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

Analysts Set New Price Targets

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

Insider Activity

In related news, insider Christine A. Leahy purchased 1,200 shares of the business's stock in a transaction dated Thursday, August 1st. The stock was purchased at an average cost of $216.15 per share, with a total value of $259,380.00. Following the completion of the acquisition, the insider now directly owns 102,200 shares of the company's stock, valued at approximately $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 SEC, which is accessible through this link. Insiders own 0.90% of the company's stock.

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.