CDW Corporation (CDW) will raise its quarterly dividend by 25 percent to 50 cents per share in 2021. This follows a dividend hike of 5.3 percent to 40 cents per share in COVID-19 year 2020 and at the same time marks 8 years of dividend increases by the IT solutions provider with a whopping average 5 year dividend growth rate (CAGR) of 25.6 percent.
The next CDW dividend of $0.50 per share be paid on December 10, 2021 to all stockholders of record as of the close of business on November 24, 2021. A new annualized dividend rate of $2.00 per share yields 1.1% at a stock price of $187.
"Dividends continue to be an important part of our capital allocation priorities, along with managing leverage to our target ratio, making strategic acquisitions and share repurchases," said Albert J. Miralles, chief financial officer, CDW. "The fourth quarter 2021 dividend demonstrates our confidence in the earnings power and cash flow generation of the business and marks the eighth consecutive year of increases since our IPO in June 2013, with the dividend growing at a compound annual growth rate of 36 percent from its initial level. We have returned approximately $4.8 billion to shareholders through share repurchases and dividends. We intend to continue to execute against our capital allocation priorities to deliver value to our shareholders just as we’ve delivered value to our customers and partners for over 35 years."
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.