CDW's Dividend Dynasty: 12 Years of Growth for Shareholders

VERNON HILLS, IL – February 04, 2026 – CDW Corporation (Nasdaq: CDW) today reaffirmed its commitment to robust shareholder returns, announcing that its Board of Directors has declared a quarterly cash dividend of $0.630 per common share. The dividend is scheduled to be paid on March 10, 2026, to all stockholders of record as of the close of business on February 25, 2026.

This announcement marks another chapter in the company's impressive history of rewarding its investors, extending its streak of annual dividend increases to twelve consecutive years since its initial public offering in June 2013. For long-term investors, CDW has become a model of consistency in the dynamic information technology sector, successfully translating its market leadership into tangible and growing financial rewards.

A Legacy of Shareholder Returns

The latest dividend declaration is not an isolated event but the continuation of a deliberate, long-term strategy focused on shareholder value. Since going public, the technology solutions provider has cultivated a reputation for its disciplined and generous capital return policy. Chief Financial Officer Albert J. Miralles noted that the dividend has increased "nearly fifteen-fold" since the company's IPO, a testament to its sustained growth and financial health.

This remarkable growth trajectory began with its first dividend of approximately $0.0475 per share in late 2013. The climb to today's $0.630 per share represents a powerful compound growth story, making the company a standout for income-focused portfolios. In total, CDW has returned a staggering $8.1 billion to its stockholders through a combination of dividends and share repurchases since its IPO, underscoring the scale of its commitment. This track record has solidified its position as a "dividend dynasty" within the tech industry, appealing to investors who seek both growth and reliable income streams.

The Engine Room: Strong Financials and Market Leadership

CDW's ability to sustain and grow its dividend is directly fueled by its strong operational performance and commanding position in the IT marketplace. The dividend announcement comes on the heels of impressive fourth-quarter and full-year 2025 financial results that surpassed analyst expectations.

For the full year 2025, the company reported net sales of $22.42 billion, a 6.8% increase from the prior year. More importantly, its adjusted free cash flow for the year stood at a robust $1.09 billion. This strong cash generation is the bedrock of its capital return program, providing the necessary funds for dividends and buybacks without compromising investments in future growth.

The company's performance was bolstered by broad-based demand across its customer end markets, including business, government, education, and healthcare. The Small Business segment was a particularly bright spot, with sales growing 13.3% for the full year. Key technology categories driving this growth included software, cloud solutions, and AI-related services, demonstrating CDW's alignment with the most critical trends in the IT industry. This ability to help customers navigate an increasingly complex technology landscape not only drives revenue but also cements its role as an indispensable partner, ensuring financial stability and predictable cash flows.

A Disciplined Capital Allocation Blueprint

The quarterly dividend is a key pillar of a much broader and more sophisticated capital allocation strategy. As CFO Albert J. Miralles stated, "Dividends represent an important component of our capital allocation priorities, along with share repurchases, strategic M&A and managing our capital structure." This integrated approach allows CDW to balance immediate shareholder returns with long-term strategic investments.

Complementing the dividend is a significant share repurchase program. By buying back its own stock, CDW reduces the number of shares outstanding, which in turn boosts earnings per share (EPS). In 2025, the company’s weighted average diluted share count fell to 132 million from 135 million in 2024, a direct result of this strategy. As of the end of 2025, CDW had approximately $685 million remaining under its current share repurchase authorization, providing ample flexibility to continue this value-enhancing activity.

In 2025 alone, the company returned approximately $982 million to shareholders through this dual approach of dividends and buybacks. Looking ahead, CDW has outlined clear financial targets that signal continued discipline. The company aims for a dividend payout of approximately 25% of its non-GAAP net income and intends to maintain a healthy net leverage ratio between 2.0 and 3.0 times. This framework ensures that shareholder returns are both generous and sustainable, backed by a strong, investment-grade balance sheet.

Standing Out in the IT Sector

Within the competitive landscape of IT solutions providers, CDW’s commitment to a growing dividend makes it a notable outlier. Many of its direct competitors, such as Insight Enterprises and ePlus, do not currently offer a regular cash dividend, choosing instead to focus capital primarily on acquisitions and internal growth. This distinction makes CDW particularly attractive to a class of investors who prioritize steady income alongside capital appreciation.

With a current dividend yield of approximately 1.99% and a payout ratio around 24% of its earnings, CDW's dividend appears both healthy and well-covered. The low payout ratio suggests there is significant room for future increases, reinforcing the company's long-term dividend growth narrative. By successfully merging the operational excellence of a Fortune 500 technology leader with the financial discipline of a consistent dividend-paying company, CDW has carved out a unique and compelling value proposition for the investment community. Its strategy demonstrates that strong market performance can be directly and consistently translated into rewarding the shareholders who support its journey.