CDW Strengthens Investor Confidence with Dividend Increase

Author: Lucas Young Updated: 02-05-2025 07:13 AM

CDW Increases Share Repurchase Program and Declares Dividend

CDW Corporation (Nasdaq: CDW), a premier provider of IT solutions spanning business, government, education, and healthcare, has made a notable announcement regarding its ongoing commitment to shareholder value. The company has authorized a significant $750 million increase to its share repurchase program, alongside the declaration of a quarterly cash dividend of $0.625 per share. The cash dividend is set to be distributed on March 11, 2025, to stockholders who are on record as of February 25, 2025. This marks a 1% increase compared to the previous year's dividend, underscoring CDW's dedication to returning value to its investors.

Commitment to Shareholder Value

Albert J. Miralles, the Chief Financial Officer of CDW, shared insights on the company’s robust history since its IPO in June 2013, highlighting a significant increase in dividends. "Since our IPO, our dividend has surged nearly fifteen-fold from its initial level. We have returned over $7.2 billion to our stockholders through dividends and share repurchases," he noted. The company continues to prioritize a capital allocation strategy focused on dividend growth, managing net leverage, and pursuing strategic acquisitions. This multifaceted approach has consistently delivered value to both shareholders and customers alike.

Details of the Share Repurchase Program

The newly authorized $750 million for share repurchases is in addition to the approximately $588 million that remains from the prior program as of December 31, 2024. CDW has expressed that share repurchases will occur periodically, utilizing private transactions, open market purchases, and other avenues permitted by securities laws. The program’s execution will depend on numerous factors, including overall market conditions and capital availability. Importantly, this program does not commit to a minimum purchase amount or number of shares, granting CDW flexibility to modify or suspend the program as needed.

About CDW Corporation

CDW Corporation (Nasdaq: CDW) ranks among the leading multi-brand IT solution providers servicing various sectors, including government and healthcare in the U.S., UK, and Canada. As a Fortune 500 entity and a member of the S&P 500 Index, CDW is recognized for its capacity to help clients navigate the complexities of the IT landscape and maximize returns on technology investments. More information is available on their official website.

Frequently Asked Questions

What is the amount of the newly authorized share repurchase program by CDW?

CDW has authorized a $750 million increase to its share repurchase program.

When will the cash dividend be paid to shareholders?

The cash dividend of $0.625 per share will be paid on March 11, 2025.

How much has CDW returned to stockholders since its IPO?

Since its IPO, CDW has returned over $7.2 billion to stockholders through dividends and share repurchases.

Is there a minimum purchase requirement for the share repurchase program?

No, the program does not require the purchase of any minimum dollar amount or number of shares.

What factors influence CDW's share repurchase strategy?

Factors include market conditions, price, regulatory requirements, and capital availability, among others.

About The Author

Even at just 28 years old, Lucas Young has made a name for himself as a writer and financial expert. Lucas is a gifted communicator of difficult financial ideas and has written a number of well-received books and articles that appeal to both new and experienced investors. The financial world has come to rely on his perceptive analysis and useful counsel. Many people have been enabled to make wise investment decisions by Lucas's commitment to financial literacy and his ability to demystify the complexities of the market. Lucas is still dedicated to advising and teaching people on their financial journeys as he shares his knowledge.

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