CDW Raises Quarterly Dividend 7.9% to $0.68

CDW Corporation raised its quarterly dividend 7.9% to $0.68 a share from $0.63. The stock trades ex-dividend on November 25, 2026, and the payment is due December 10, 2026, lifting the annualized dividend to $2.72 a share.

Why the dividend changed

CDW linked the increase to confidence in its earnings power and ability to generate cash. Chief Financial Officer Albert J. Miralles described dividends as one part of the company’s capital-allocation priorities, alongside share repurchases, strategic acquisitions and management of its capital structure. Future distributions remain subject to board approval and business and financial conditions, according to the company’s dividend declaration.

The raise followed a strong third quarter. Net sales increased 17.7%, gross profit rose 10.3% and non-GAAP net income per diluted share increased 20.4%. Management attributed the performance to broad demand across customer markets, with particular strength in data storage, servers, notebooks and mobile devices, and software. Enterprise artificial-intelligence adoption also contributed to demand, according to CDW’s quarterly results.

The results were not uniformly stronger. Gross profit margin declined to 20.5% from 21.9% because sales shifted toward lower-margin product categories. Operating cash flow for the nine months ended September 30, 2026, also fell from the prior-year period as receivables and inventory absorbed cash, partly offset by accounts payable. CDW said increased sales activity, customer-driven inventory positions and higher hardware costs contributed to those working-capital movements. The company nevertheless said it had adequate liquidity for at least the next 12 months in its quarterly SEC filing.

Dividend track record

The latest increase extends a consistent quarterly payment pattern. CDW paid $0.63 a share on four consecutive ex-dividend dates from November 25, 2025, through August 25, 2026. The preceding four payments, from November 25, 2024, through August 25, 2025, were $0.625 each. The new $0.68 rate therefore represents a distinct step higher after four quarters at the previous level.

Full-year payments rose from $1.54 a share in 2020 to $1.70 in 2021, $2.09 in 2022, $2.39 in 2023, $2.49 in 2024 and $2.51 in 2025. Annual growth accelerated to 22.9% in 2022 before moderating to 14.4% in 2023, 4.0% in 2024 and 0.8% in 2025. The five-year record amounts to 10.5% annual growth, while no annual cut is recorded.

CDW says the new declaration marks its 13th consecutive year of dividend increases, a record dating from the period following its public listing. That company-reported streak is stated in the dividend release.

Is the dividend covered?

The dividend consumes 29% of earnings. That payout ratio leaves most earnings available for reinvestment, acquisitions, debt management and share repurchases while supporting the quarterly distribution.

SmarterDividends rates the dividend A, with a safety score of 83. The grade means very safe, corresponding to a score of 80-100. It reflects strong earnings coverage and a record of repeated increases, although it does not remove exposure to weaker technology spending, margin pressure or working-capital demands.

The recent cash-flow movement is relevant to that assessment. Lower operating cash flow was attributed mainly to working capital rather than a contraction in net income. Continued conversion of earnings into cash remains important because CDW is funding the dividend alongside acquisitions, repurchases and debt obligations.

Yield and valuation

At a share price of $157.00, the $2.72 annual dividend produces a 1.73% forward yield. That is above the Technology sector median forward yield of 1.41%, giving CDW a higher income rate than the sector benchmark while retaining a relatively low earnings payout ratio.

SmarterDividends estimates fair value at $164.43 and classifies the valuation as fair. That estimate represents 5% upside from the stated share price. The stock has recorded an 8.9% gain over one year.

What to watch

The immediate dates are November 25, 2026, when the shares trade ex-dividend, and December 10, 2026, when the payment is scheduled. Investors buying on or after the ex-dividend date will not receive that payment.

Subsequent quarterly results will show whether demand for infrastructure, mobile devices, software and enterprise AI continues to support earnings coverage. Gross-margin performance and the working-capital effects of higher receivables and inventory are additional checkpoints identified in the latest results and SEC filing.

CDW’s integration of data and AI consultancy Lovelytics is another capital-allocation item to monitor. The company used part of a recent debt issuance to fund the acquisition and plans to use proceeds to repay notes maturing in December 2026. Those commitments sit alongside the dividend, share repurchases and ongoing investment in customer capabilities.