CDW Prepares for Upcoming Dividend
CDW Corporation enters the week with two developments that matter to income focused investors. The stock will go ex dividend on 25 November 2025, and investors must own shares by the close on 24 November to qualify.
The company will pay a quarterly dividend of 0.63 dollars on 10 December. With shares near 140 dollars, the forward yield stands around 1.8 percent, and the stock is expected to open slightly lower on the ex dividend date as the market adjusts for the payout.
CDW’s annualized dividend of 2.50 dollars per share aligns with its recent pattern of steady increases. The five year compound annual dividend growth rate is about 17 percent, and the ten year rate is above 23 percent.
This positions CDW as a consistent dividend grower rather than a high yield payer, a profile that appeals to long term dividend reinvestors.
Shares Hit a New 1 Year Low
The stock recently touched a 52 week low of 135.63 dollars as volatility in the tech sector continues to pressure valuations. Concerns about corporate IT spending have contributed to the weakness.
Despite market softness, the company’s fundamentals remain intact. CDW maintains solid margins, strong cash flow and a current ratio of 1.39, while return on equity above 43 percent highlights operational efficiency.
The recent pullback has pushed the yield above its historical averages. The current yield near 1.8 percent compares favorably with its five year average of about 1.1 percent.
With a price to earnings ratio of about 17.7, CDW now trades below its typical valuation range, offering one of the more attractive entry points in recent years.
Institutional Buying Signals Confidence
Institutional interest has strengthened as well. DNB Asset Management recently added more than 22,000 shares to its position.
Increases in institutional ownership during periods of weakness often reflect confidence in the stability of future earnings and the company’s long term strategy. Larger institutional positions can also help reduce share price volatility.
Key Factors to Watch
Investors should monitor whether recent market weakness represents a temporary shift in sentiment or signals a change in CDW’s expectations for future IT spending.
The company’s next earnings update, scheduled for early November 2025, will provide further clarity. For now, the dividend remains well supported with a conservative payout ratio and cash flow per share above 8.5 dollars.
CDW’s long term performance in essential IT solutions continues to position it as a defensive holding within the broader tech sector.
The combination of a stable dividend, attractive valuation and solid fundamentals suggests the latest decline is more sentiment driven than reflective of underlying business concerns. For income investors willing to look through short term volatility, the current setup offers a potentially timely opportunity.
