CDW Authorizes $750 Million Share Repurchase Program Increase and Declares Quarterly Cash Dividend of $0.625 Per Share

Rhea-AI Summary

CDW (Nasdaq: CDW) announced a significant expansion of its shareholder return program, including a $750 million increase to its share repurchase authorization and a quarterly cash dividend declaration of $0.625 per share. The dividend represents a 1% increase from the previous year and will be paid on March 11, 2025, to stockholders of record as of February 25, 2025.

The new repurchase authorization adds to approximately $588 million remaining from the previous program as of December 31, 2024. Since its IPO in June 2013, CDW has returned over $7.2 billion to stockholders through dividends and share repurchases, with the dividend growing nearly fifteen-fold from its initial level.

Positive

• $750 million increase in share repurchase authorization
• 1% dividend increase to $0.625 per share
• $588 million still remaining from previous repurchase program
• Consistent track record of returning capital to shareholders ($7.2 billion since IPO)
• Fifteen-fold dividend growth since 2013 IPO

Negative

• Modest 1% dividend increase may not keep pace with inflation

Insights

Financial Analyst

CDW's latest capital allocation announcement reveals a sophisticated approach to shareholder returns, with the $750 million share repurchase authorization increase bringing total buyback capacity to $1.338 billion, representing approximately 5% of current market capitalization. The modest 1% dividend increase to $0.625 per share, while maintaining the company's dividend growth streak, suggests a strategic pivot towards favoring share repurchases in the current market environment.

The fifteen-fold dividend increase since IPO demonstrates CDW's remarkable transformation from a growth-focused tech solutions provider to a mature cash-generating enterprise. The company's balanced capital allocation strategy, emphasizing both dividends and opportunistic buybacks while maintaining flexibility for strategic acquisitions, has proven effective in creating shareholder value.

Particularly noteworthy is the timing and size of the buyback authorization. In the current tech sector landscape, where many companies are reducing capital returns amid economic uncertainty, CDW's substantial buyback program signals management's confidence in the company's cash flow generation capabilities and underlying business strength. The flexibility built into the repurchase program, allowing for various transaction types and no minimum purchase requirements, provides management with tactical advantages in capital deployment.

The total capital return package reflects a company executing from a position of strength, with the ability to maintain strategic investments while returning significant capital to shareholders. This balanced approach should support both near-term shareholder returns and long-term business sustainability.

Reinforces Ongoing Commitment to Delivering Value to Stockholders

VERNON HILLS, Ill.--(BUSINESS WIRE)-- CDW Corporation (Nasdaq: CDW), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that its Board of Directors has authorized a $750 million increase to the Company’s share repurchase program and declared a quarterly cash dividend. The cash dividend of $0.625 per common share will be paid on March 11, 2025 to all stockholders of record as of the close of business on February 25, 2025. This amount represents a 1 percent increase over last year’s dividend.

“Since our IPO in June 2013, our dividend has increased nearly fifteen-fold from its initial level and we have returned more than $7.2 billion to stockholders through dividends and share repurchases,” said Albert J. Miralles, chief financial officer, CDW. “Our capital allocation strategy continues to emphasize dividend growth, along with managing our net leverage and making strategic acquisitions, in addition to share repurchases. This strategy has enabled us to deliver value to our stockholders, just as we have delivered value to our customers and partners for 40 years.”

Future dividends and share repurchase authorizations will be subject to approval by CDW's Board of Directors. The $750 million authorization is incremental to the approximately $588 million remaining from the previous repurchase program as of December 31, 2024. Share repurchases under the program will be made from time to time in private transactions, open market purchases or other transactions as permitted by securities laws and other legal requirements. The timing and amounts of any purchases will be based on market conditions and other factors including but not limited to price, regulatory requirements and capital availability. The program does not require the purchase of any minimum dollar amount or number of shares and the program may be modified, suspended or discontinued at any time.

About CDW

CDW Corporation (Nasdaq: CDW) is a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. A Fortune 500 company and member of the S&P 500 Index, CDW helps its customers navigate an increasingly complex IT market and maximize return on their technology investments. For more information about CDW, please visit www.CDW.com.

Forward-Looking Statements

Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future dividends, share repurchases, earnings growth, capital allocation, leverage ratio and other strategic plans of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent filings with the SEC. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

CDWPR-FI

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205735737/en/

Investor Inquiries

Steven O’Brien

Vice President, Investor Relations

(847) 968-0238

investorrelations@cdw.com

Media Inquiries

Sara Granack

Vice President, Corporate Communications

(847) 419-7411

mediarelations@cdw.com

Source: CDW Corporation

FAQ

How much is CDW's new share repurchase program increase?

CDW authorized a $750 million increase to its share repurchase program, adding to the existing $588 million remaining from the previous program as of December 31, 2024.

What is CDW's new quarterly dividend amount for 2025?

CDW declared a quarterly cash dividend of $0.625 per share, representing a 1% increase over the previous year's dividend.

When will CDW pay its next quarterly dividend?

CDW will pay its quarterly dividend of $0.625 per share on March 11, 2025, to stockholders of record as of February 25, 2025.

How much has CDW returned to shareholders since its IPO?

Since its IPO in June 2013, CDW has returned more than $7.2 billion to stockholders through dividends and share repurchases.

How much has CDW's dividend grown since its IPO?

CDW's dividend has increased nearly fifteen-fold from its initial level since the company's IPO in June 2013.