CDW Corporation (CDW) will raise its quarterly dividend by 5.3 percent to 40 cents per share in 2020. This follows a 28.8 percent to $0.38 per share in 2019 and marks 7 years of dividend increases by the IT solutions provider.

The next dividend of $0.40 per share will be paid on December 10, 2020 to all stockholders of record as of the close of business on November 25, 2020. A new annualized dividend rate of $1.60 per share yields 1.2% at a stock price of $129.74.

From the company's press release announcing this dividend hike: “The fourth quarter 2020 dividend marks the seventh consecutive year of increases since our initial public offering in 2013, with the dividend growing at a compound annual growth rate of 38 percent from its initial level. The increase reflects our strong liquidity position and the cash flow generation capability of CDW's business," said Collin B. Kebo, chief financial officer, CDW. "Dividends continue to be an important part of our capital allocation priorities, along with making strategic acquisitions, managing leverage to our target ratio and share repurchases."

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.