November 08, 2025 a 07:46 am
CDW: Dividend Analysis - CDW Corporation
CDW Corporation presents itself as a viable candidate for dividend investment, characterized by a steady growth in dividend payouts and a reasonable payout ratio. The company's commitment to distributing returns to shareholders over the past 13 years, alongside a dividend yield of 1.76%, indicates a stable dividend policy. However, investors should consider the broader market context and company-specific factors when evaluating future performance.
📊 Overview
The fundamental aspects of CDW Corporation's dividend profile highlight its sector positioning and overall dividend strategy.
| Attribute | Value |
|---|---|
| Sector | Information Technology |
| Dividend Yield | 1.76 % |
| Current Dividend per Share | 2.48 USD |
| Dividend History | 13 years |
| Last Cut or Suspension | None |
📈 Dividend History
Understanding the trajectory and reliability of dividend payouts is critical for assessing the risk and potential for future dividend returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.505 |
| 2024 | 2.485 |
| 2023 | 2.39 |
| 2022 | 2.09 |
| 2021 | 1.7 |
📉 Dividend Growth
The growth of dividends over time demonstrates the company's commitment to returning value to shareholders.
| Time | Growth |
|---|---|
| 3 years | 0.13 % |
| 5 years | 0.14 % |
The average dividend growth is 0.14% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios provide insight into how sustainable and safe the current dividend payments are relative to income and cash flows.
| Key figure | Ratio |
|---|---|
| EPS-based | 30.93 % |
| Free cash flow-based | 32.03 % |
With an EPS-based payout ratio of 30.93 % and a free cash flow-based payout ratio of 32.03 %, CDW Corporation maintains a relatively conservative approach, suggesting sufficient coverage to support future dividend payments.
💰 Cashflow & Capital Efficiency
Analyzing cash flow metrics informs us of the company's ability to generate sufficient cash to support operations and dividends.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 5.00 % | 4.74 % | 4.95 % |
| Earnings Yield | 4.62 % | 3.61 % | 4.63 % |
| CAPEX to Operating Cash Flow | 9.57 % | 9.27 % | 9.60 % |
| Stock-based Compensation to Revenue | 0.38 % | 0.44 % | 0.31 % |
| Free Cash Flow / Operating Cash Flow Ratio | 90.43 % | 90.73 % | 90.40 % |
The financial stability for CDW indicates a robust cash generation capability, supporting continuous dividend payments and capital growth.
🏦 Balance Sheet & Leverage Analysis
Evaluating leverage ratios and the balance sheet health provides insights into financial stability and debt service capabilities.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 3.80 | 2.84 | 2.55 |
| Debt-to-Assets | 46.44 % | 43.73 % | 40.82 % |
| Debt-to-Capital | 79.18 % | 73.99 % | 71.81 % |
| Net Debt to EBITDA | 2.87 | 2.68 | 2.85 |
| Current Ratio | 1.33 | 1.23 | 1.35 |
| Quick Ratio | 1.17 | 1.11 | 1.24 |
| Financial Leverage | 8.19 | 6.50 | 6.24 |
The ratios indicate that CDW has been successfully deleveraging, which adds to their financial health and reduces risks linked to debt obligations.
💡 Fundamental Strength & Profitability
Key profitability ratios and efficiency metrics help in understanding how well the company converts sales into profits and manages resources.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 69.51 % | 54.07 % | 45.81 % |
| Return on Assets | 8.49 % | 8.31 % | 7.34 % |
| Net Margin | 4.69 % | 5.17 % | 5.13 % |
| EBIT Margin | 7.26 % | 7.84 % | 7.86 % |
| EBITDA Margin | 8.48 % | 9.11 % | 9.17 % |
| Gross Margin | 19.73 % | 21.76 % | 21.92 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
CDW's profitability ratios reflect strong operational excellence, with a consistent ROE and improving margin, marking efficiency in resource utilization.
📈 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
👍 Rating
CDW Corporation scores a robust 30 out of 40 in our dividend scoring system, reflecting its solid dividend capabilities, strong financial health, and reliability, making it a commendable choice for income-focused portfolios, albeit with consideration for future growth potential.