June 18, 2026 a 11:31 am
CDW: Dividend Analysis - CDW Corporation
CDW Corporation presents a compelling investment opportunity with its consistent dividend performance and robust financial metrics. With a market cap of approximately $16.19 billion and a substantial number of outstanding shares, CDW is well-positioned within its sector. The company has demonstrated resilience and a commitment to shareholder returns through a steady dividend history.
📊 Overview
CDW operates within a competitive sector, consistently providing value through attractive dividend yields.
| Detail | Value |
|---|---|
| Sector | Technology (IT Services) |
| Dividend Yield | 2.27 % |
| Current Dividend per Share | 2.50 USD |
| Dividend History | 14 years |
| Last Cut or Suspension | None |
ℹ️ Dividend History
The company has a commendable track record of dividend history, enhancing investor confidence. Consistent dividend payments signify stability and robust cash flow management.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.26 |
| 2025 | 2.505 |
| 2024 | 2.485 |
| 2023 | 2.39 |
| 2022 | 2.09 |
💹 Dividend Growth
Monitoring dividend growth is critical for long-term investors. It illustrates the company's ability to increase returns to shareholders over time.
| 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
The payout ratio is a key indicator of a company's financial health, representing the percentage of earnings paid to shareholders in dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 29.97 % |
| Free cash flow-based | 29.71 % |
With a payout ratio of 29.97 % (EPS) and 29.71 % (FCF), CDW prudently balances shareholder returns with reinvestment opportunities.
💰 Cashflow & Capital Efficiency
Analyzing the cashflow and capital efficiency metrics provides insight into the business's operational effectiveness and sustainability.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 6.08 % | 4.96 % | 4.74 % |
| Earnings Yield | 5.96 % | 4.63 % | 3.61 % |
| CAPEX to Operating Cash Flow | 9.78 % | 9.60 % | 9.27 % |
| Stock-based Compensation to Revenue | 0 % | 0.31 % | 0.44 % |
| Free Cash Flow / Operating Cash Flow Ratio | 90.28 % | 90.40 % | 90.73 % |
| Capital Return (ROIC) | 12.13 % | 13.13 % | 15.13 % |
The high Free Cash Flow to Operating Cash Flow ratio highlights efficient cash conversion, and strong ROIC supports long-term value creation for shareholders.
🧾 Balance Sheet & Leverage Analysis
Financial ratios related to the balance sheet are critical in assessing the company's leverage and financial stability.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 2.43 | 2.55 | 2.84 |
| Debt-to-Assets | 39.50 % | 40.82 % | 43.73 % |
| Debt-to-Capital | 70.84 % | 71.81 % | 73.99 % |
| Net Debt to EBITDA | 2.93 | 2.85 | 2.68 |
| Current Ratio | 1.18 | 1.35 | 1.23 |
| Quick Ratio | 1.10 | 1.24 | 1.11 |
| Financial Leverage | 6.15 | 6.24 | 6.50 |
The company maintains high leverage, typical in the industry, but with robust interest coverage ratios, indicating manageable debt obligations.
🎯 Fundamental Strength & Profitability
Profitability metrics demonstrate the company's ability to generate earnings relative to sales, assets, and equity.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 40.93 % | 45.81 % | 54.07 % |
| Return on Assets | 6.65 % | 7.34 % | 8.31 % |
| Return on Invested Capital | 12.13 % | 13.13 % | 15.14 % |
| Net Profit Margin | 4.76 % | 5.13 % | 5.17 % |
| EBIT Margin | 7.38 % | 7.86 % | 7.84 % |
| EBITDA Margin | 8.70 % | 9.17 % | 9.11 % |
| Gross Profit Margin | 21.73 % | 21.92 % | 21.76 % |
These profitability ratios indicate strong earnings potential relative to equity and assets, further supported by favorable margins.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 33/40
🏁 Rating
CDW earns a strong recommendation with a well-balanced dividend profile, efficient cashflow management, and robust profitability. It remains a reliable choice for dividend-focused investors. Future growth metrics suggest a favorable outlook in sustaining shareholder returns.
Smart Data Insight
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