VERNON HILLS, Ill. - CDW Corporation (NASDAQ:CDW), a prominent provider of IT solutions, declared a quarterly cash dividend of $0.62 per common share payable on June 11, 2024, to stockholders of record by May 24, 2024.
The company's chief financial officer, Albert J. Miralles, emphasized the role of dividends and share repurchases in their capital allocation strategy, noting the substantial increase in dividends since the company's IPO in June 2013 and the return of approximately $6.5 billion to stockholders through dividends and share repurchases.
The company, which has been operational for 40 years, caters to a diverse clientele, including business, government, education, and healthcare sectors in the United States, the United Kingdom, and Canada. As a Fortune 500 entity and a member of the S&P 500 Index, CDW's approach focuses on guiding customers through the complex IT market to optimize their technology investments.
While the announcement reflects CDW's commitment to its stockholders, the company also made it clear that future dividends are contingent upon the approval of its Board of Directors. The statement included forward-looking remarks about the company's expectations regarding future dividends, earnings growth, and strategic plans.
CDW cautioned that these projections are subject to various risks and uncertainties that might cause actual results to differ significantly from expectations.
Investors are directed to the company's Annual Report on Form 10-K for the year ended December 31, 2023, for a more detailed discussion of potential risks and forward-looking statements. CDW has stated it will not update or revise any forward-looking statements unless required by law.
This financial update is based on a press release statement from CDW Corporation.
InvestingPro Insights
CDW Corporation (NASDAQ:CDW) continues to demonstrate its commitment to shareholder returns with a consistent dividend policy. The company has not only maintained but also raised its dividend for 11 consecutive years, which is a testament to its stable financials and a positive signal for investors seeking regular income. The dividend yield stands at 1.03% as of the latest data, with a 5.08% growth in dividends over the last twelve months.
InvestingPro data highlights a robust market capitalization of $32.5 billion for CDW, underscoring its significant presence in the Electronic Equipment, Instruments & Components industry. Despite a challenging environment that has seen a revenue decline of 9.99% over the last twelve months, the company has managed to maintain a gross profit margin of 21.76%.
This, coupled with an adjusted P/E ratio of 27.92, indicates that while CDW faces margin pressures, it remains profitable and is valued higher than the industry average.
For investors looking to delve deeper into CDW's financial health and future prospects, InvestingPro provides a comprehensive set of additional tips. Among these, it is worth noting that CDW is trading at a high Price / Book multiple of 15.91, which may suggest a premium valuation compared to its tangible assets. Furthermore, the company is anticipated to remain profitable this year, as analysts predict, and has shown a strong return over the last five years.
For those interested in more nuanced analysis and additional insights, there are 9 more InvestingPro Tips available for CDW at Investing.com/pro/CDW. And don't forget, for a richer experience and access to exclusive content, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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