CDW Corporation (Nasdaq: CDW), a prominent provider of information technology solutions to businesses, government entities, educational institutions, and healthcare clients in the United States, the United Kingdom, and Canada, has declared a significant enhancement to its share repurchase program. The company’s Board of Directors has approved a $750 million increase in the program, concurrently announcing a quarterly cash dividend.
The quarterly cash dividend, amounting to $0.62 per common share, is scheduled for payment on March 12, 2024. This dividend will be disbursed to all stockholders of record as of the close of business on February 26, 2024, reflecting a 5 percent upsurge compared to last year’s dividend.
Albert J. Miralles, Chief Financial Officer at CDW, highlighted the company’s consistent commitment to delivering value to its stockholders. Miralles noted, “Since our IPO in June 2013, our dividend has increased nearly fifteen-fold from its initial level, and we have returned more than $6.3 billion to stockholders through dividends and share repurchases.” He emphasized the company’s capital allocation strategy, focusing on dividend growth, prudent management of net leverage, strategic acquisitions, and share repurchases.
CDW’s Board of Directors will continue to evaluate and approve future dividends and share repurchase authorizations. The newly authorized $750 million increment is in addition to the approximately $338 million remaining from the previous repurchase program as of December 31, 2023.
The share repurchases under the program will be executed through private transactions, open market purchases, or other permissible transactions in accordance with securities laws and legal requirements. The decision-making process for these repurchases will consider market conditions, pricing, regulatory requirements, and capital availability. Importantly, the program does not mandate the acquisition of a minimum dollar amount or a specific number of shares, and it remains subject to modification, suspension, or discontinuation at any time.