Fintel reports that on October 3, 2023, UBS initiated coverage of CDW (NASDAQ:CDW) with a Buy recommendation.
Analyst Price Forecast Suggests 9.79% Upside
As of August 31, 2023, the average one-year price target for CDW is 220.65. The forecasts range from a low of 175.74 to a high of $246.75. The average price target represents an increase of 9.79% from its latest reported closing price of 200.98.
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The projected annual revenue for CDW is 25,933MM, an increase of 15.86%. The projected annual non-GAAP EPS is 10.52.
CDW Declares $0.59 Dividend
On August 2, 2023 the company declared a regular quarterly dividend of $0.59 per share ($2.36 annualized). Shareholders of record as of August 25, 2023 received the payment on September 12, 2023. Previously, the company paid $0.59 per share.
At the current share price of $200.98 / share, the stock's dividend yield is 1.17%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.16%, the lowest has been 0.80%, and the highest has been 1.78%. The standard deviation of yields is 0.17 (n=236).
The current dividend yield is 0.06 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.29. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.55%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1553 funds or institutions reporting positions in CDW. This is a decrease of 10 owner(s) or 0.64% in the last quarter. Average portfolio weight of all funds dedicated to CDW is 0.36%, a decrease of 9.63%. Total shares owned by institutions decreased in the last three months by 2.35% to 142,407K shares. 
The put/call ratio of CDW is 0.80, indicating a bullish outlook.
What are Other Shareholders Doing?
Select Equity Group holds 5,516K shares representing 4.12% ownership of the company. In it's prior filing, the firm reported owning 5,633K shares, representing a decrease of 2.12%. The firm decreased its portfolio allocation in CDW by 3.56% over the last quarter.
Alliancebernstein holds 4,558K shares representing 3.40% ownership of the company. In it's prior filing, the firm reported owning 4,781K shares, representing a decrease of 4.90%. The firm decreased its portfolio allocation in CDW by 14.45% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,197K shares representing 3.13% ownership of the company. In it's prior filing, the firm reported owning 4,189K shares, representing an increase of 0.19%. The firm decreased its portfolio allocation in CDW by 12.97% over the last quarter.
Longview Partners holds 3,353K shares representing 2.50% ownership of the company. In it's prior filing, the firm reported owning 3,150K shares, representing an increase of 6.06%. The firm decreased its portfolio allocation in CDW by 6.95% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 3,209K shares representing 2.39% ownership of the company. In it's prior filing, the firm reported owning 3,159K shares, representing an increase of 1.55%. The firm decreased its portfolio allocation in CDW by 13.38% over the last quarter.
CDW Background Information
(This description is provided by the company.)
CDW Corporation 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 was founded in 1984 and employs approximately 10,000 coworkers. For the year ended December 31, 2020, the company generated Net sales over $18 billion.
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