CDW Co. (NASDAQ:CDW) to Issue $0.63 Quarterly Dividend

CDW Co. (NASDAQ:CDW) declared a quarterly dividend on Wednesday, February 5th,RTT News reports. Stockholders of record on Tuesday, February 25th will be given a dividend of 0.625 per share by the information technology services provider on Tuesday, March 11th. This represents a $2.50 annualized dividend and a dividend yield of 1.21%.

CDW has raised its dividend by an average of 13.5% per year over the last three years. CDW has a payout ratio of 22.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect CDW to earn $9.33 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 26.8%.

CDW Stock Performance

NASDAQ CDW opened at $206.13 on Thursday. The stock has a market cap of $27.47 billion, a P/E ratio of 25.20, a PEG ratio of 5.39 and a beta of 1.01. The company’s 50-day simple moving average is $183.08 and its 200 day simple moving average is $202.65. CDW has a twelve month low of $168.43 and a twelve month high of $263.37. The company has a quick ratio of 1.28, a current ratio of 1.40 and a debt-to-equity ratio of 2.39.

CDW (NASDAQ:CDW) last posted its earnings results on Wednesday, February 5th. The information technology services provider reported $2.40 earnings per share for the quarter, beating analysts’ consensus estimates of $2.33 by $0.07. CDW had a net margin of 5.33% and a return on equity of 58.31%. As a group, research analysts forecast that CDW will post 8.99 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on CDW. JPMorgan Chase & Co. cut shares of CDW from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $260.00 to $235.00 in a research note on Monday, October 28th. UBS Group decreased their price objective on shares of CDW from $233.00 to $220.00 and set a “buy” rating on the stock in a research note on Tuesday, January 7th. Barclays decreased their price objective on shares of CDW from $229.00 to $201.00 and set an “equal weight” rating on the stock in a research note on Thursday, October 31st. Morgan Stanley upped their price objective on shares of CDW from $190.00 to $193.00 and gave the stock an “equal weight” rating in a research note on Monday, December 16th. Finally, Redburn Atlantic assumed coverage on shares of CDW in a research note on Friday, November 15th. They set a “buy” rating and a $230.00 price objective on the stock. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, CDW has a consensus rating of “Moderate Buy” and an average target price of $239.33.

CDW announced that its board has authorized a share buyback plan on Wednesday, February 5th that allows the company to repurchase $750.00 million in outstanding 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 stock is 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.