VERNON HILLS, Ill. - CDW Corporation (NASDAQ:CDW), a prominent provider of IT solutions, has declared a slight increase in its quarterly cash dividend. The Board of Directors approved a payment of $0.625 per common share, scheduled for December 10, 2024, to shareholders on record as of November 25, 2024. This reflects a modest 1 percent rise from the previous year's dividend.
The company, which operates in the U.S., the U.K., and Canada, aligns this dividend increase with its goal of distributing 25 percent of the trailing twelve months' Non-GAAP net income up to September 30, 2024. CDW emphasizes that future dividends will remain contingent on the Board's approval.
Albert J. Miralles, CDW's chief financial officer, underscored the dividend's role in their capital allocation strategy, which also includes share repurchases and strategic mergers and acquisitions. Miralles highlighted the company's track record since its IPO in June 2013, noting a nearly fifteen-fold increase in its dividend and eleven consecutive years of growth. To date, CDW has returned approximately $6.9 billion to stockholders in share repurchases and dividends.
CDW has established itself as a Fortune 500 company and is a member of the S&P 500 Index. Celebrating 40 years of service, CDW continues to assist its diverse customer base in navigating the complex IT market to maximize technology investment returns.
Statements regarding future dividends and strategic financial plans are forward-looking and subject to risks and uncertainties that could cause actual results to differ. CDW cautions that while it believes in its strategic intentions, there is no guarantee these goals will be achieved. The company refers to its Annual Report and SEC filings for a detailed discussion of potential risks.
This announcement is based on a press release statement and provides stockholders with the latest information on CDW's financial stewardship and commitment to delivering shareholder value.
In other recent news, CDW Corporation's Q3 earnings failed to meet analyst expectations, attributing the shortfall to economic uncertainty and cautious tech spending. The company reported adjusted earnings per share of $2.63, falling short of the projected $2.86, and a revenue of $5.52 billion, below the predicted $5.73 billion. The company's net sales saw a 3.5% decrease, primarily due to declines in the Public and Corporate segments. Despite these results, CDW managed to maintain its gross profit margin at 21.8%.
The Corporate segment's net sales decreased by 4.4% to $2.16 billion, and the Public segment fell by 5.1% to $2.34 billion. However, CDW's UK and Canadian operations, reported as "Other," showed growth of 4.8% to $640 million. Amid these developments, CDW announced a quarterly cash dividend of $0.625 per common share.
Looking forward, CDW aims to exceed US IT market growth by 200 to 300 basis points on a constant currency basis. This is part of the company's strategy to navigate the evolving business landscape and assist customers with their critical IT needs.
InvestingPro Insights
CDW Corporation's recent dividend increase aligns with its broader financial strategy and market position. According to InvestingPro data, CDW boasts a market capitalization of $29.37 billion, reflecting its significant presence in the IT solutions sector. The company's commitment to shareholder returns is further evidenced by an InvestingPro Tip highlighting that CDW has raised its dividend for 11 consecutive years, underscoring the consistency mentioned in the article.
Despite the modest 1% increase in the quarterly dividend, CDW's dividend yield stands at 1.13%, based on recent data. This yield, coupled with the company's dividend growth of 5.08% over the last twelve months, demonstrates CDW's ongoing commitment to returning value to shareholders, as emphasized by CFO Albert J. Miralles.
Another InvestingPro Tip notes that CDW is a prominent player in the Electronic Equipment, Instruments & Components industry, which aligns with its Fortune 500 status and S&P 500 Index membership mentioned in the article. This position is supported by the company's robust financials, including a revenue of $20.94 billion over the last twelve months.
For investors seeking a deeper understanding of CDW's financial health and market position, InvestingPro offers additional insights with 10 more tips available, providing a comprehensive view of the company's performance and prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.