January 08, 2026 a 02:46 am
CDW: Dividend Analysis - CDW Corporation
CDW Corporation demonstrates a steady commitment to its shareholders through a moderate dividend yield and consistent dividend history. With over a decade of uninterrupted payouts, CDW caters to investors seeking income stability. The company's strategies appear robust, as evidenced by its payout ratios and growing yields, indicating financial prudence and growth potential.
📊 Overview
CDW Corporation operates in the technology sector, providing a compelling growth and income proposition to investors. The company's moderate dividend yield of 1.75% and consistent dividend growth reflect a strong operational base and commitment to returning value to shareholders. The absence of recent dividend cuts further highlights its financial resilience.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Technology | 1.75% | 2.48 USD | 13 years | None |
🗣️ Dividend History
The consistent dividend history of CDW Corporation, spanning 13 years, reflects operational stability and management's confidence in future cash flows. Historical dividend payouts offer insights into the company's policy of rewarding shareholders while maintaining growth investments.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.505 |
| 2024 | 2.485 |
| 2023 | 2.39 |
| 2022 | 2.09 |
| 2021 | 1.7 |
📈 Dividend Growth
CDW Corporation's dividend growth over 3 and 5 years indicates a trajectory of stable increases. This growth pattern is crucial for income-focused investors seeking inflation-beating returns.
| Time | Growth |
|---|---|
| 3 years | 6.22% |
| 5 years | 10.22% |
The average dividend growth is 10.22% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
A healthy payout ratio is vital for sustaining dividend affordability without compromising growth. CDW's ratios reflect its strong earnings and cash flow management.
| Key Figure | Ratio |
|---|---|
| EPS-based | 30.93% |
| Free cash flow-based | 32.03% |
The EPS payout ratio of 30.93% and FCF ratio of 32.03% indicate a sustainably managed dividend policy, leaving ample room for reinvestment and growth.
📉 Cashflow & Capital Efficiency
Understanding cash flow dynamics and capital efficiency is crucial for gauging a company's operational health. CDW Corporation shows strong cash flow management and efficient capital allocation over recent years.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 5.00% | 4.74% | 4.96% |
| 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 | 90.40% | 90.73% | 90.40% |
CDW Corporation's cash flow metrics highlight considerable liquidity and operational efficiency, ensuring sufficient capital for growth and shareholder returns.
🗣️ Balance Sheet & Leverage Analysis
Assessing balance sheet strength and leverage helps investors understand potential financial stability risks. CDW Corporation displays a well-managed debt structure and operational flexibility.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 380.33% | 284.40% | 254.68% |
| 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 | 2.86 |
| Current Ratio | 1.33 | 1.23 | 1.35 |
| Quick Ratio | 1.17 | 1.11 | 1.24 |
The healthy leverage ratios suggest CDW can effectively manage debt levels, maintaining a strong financial position and liquidity buffer.
📊 Fundamental Strength & Profitability
Profitability metrics provide insight into operational efficiency and return generation. CDW Corporation's strong returns on equity and assets illustrate robust financial health.
| 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 Corporation's profitability margins demonstrate solid operational leverage, capable of sustaining competitive profitability levels.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 32/40
⚠️ Rating
Based on the analysis, CDW Corporation offers a reliable income stream with moderate growth potential, suitable for investors seeking stability and consistent payouts. Its solid fundamentals and financial ratios underscore its robustness, while areas such as balance sheet quality present potential risks that are managed effectively. CDW Corporation is a strong choice for dividend-seeking investors with a long-term focus.