CDW Corporation (CDW) will raise its quarterly dividend by 28.8 percent to $0.38 per share in 2019. This follows dividend increases of at least 30.0 percent in the previous five years by the IT solutions provider.

The next dividend of $0.38 per share will be paid on December 10, 2019 to all stockholders of record as of the close of business on November 25, 2019. A new annualized dividend rate of $1.52 per share yields 1.2% at a stock price of $131.20.

The annualized fourth quarter dividend puts the company on track to achieve the target of delivering a dividend payout of 30 percent of free cash flow by year-end 2019, which was announced in November 2014. Future dividends will be subject to Board of Director approval.

“Going forward, we will target our annualized fourth quarter dividend to be approximately 25 percent of Non-GAAP net income, updating the dividend to grow in-line with earnings," said Collin Kebo, chief financial officer, CDW. “Annual dividend increases are an important part of our capital allocation strategy, along with maintaining our leverage ratio, making strategic acquisitions and share repurchases.  Since our IPO in June 2013, our dividend has increased nearly nine-fold and we have returned more than $2.7 billion to shareholders through share repurchases and dividends.”

CDW Corporation (CDW) provides integrated information technology solutions to small, medium and large business, government, education and healthcare customers in the United States, Canada, and the United Kingdom. The company's offerings range from discrete hardware and software products to integrated IT solutions such as mobility, security, data centeroptimization, cloud computing, virtualization and collaboration. CDW was founded in 1984 and became a public company in 1993.