WESTLAKE, Texas - The Charles Schwab Corporation (NYSE:SCHW)'s Board of Directors announced today a regular quarterly cash dividend of $0.25 per common share, with a payment date set for November 22, 2024, to shareholders on record by November 8, 2024.
In addition to the common stock dividend, the Board declared dividends on several series of outstanding preferred stock. These dividends are due on December 2, 2024, for stockholders on record as of November 15, 2024. The series of preferred stocks and their respective dividend payments per share and per depositary share are as follows: Series D at $14.88 and $0.372000, Series F at $2,500.00 and $25.000000, Series G at $1,343.75 and $13.437500, Series H and Series I both at $1,000.00 and $10.000000, Series J at $11.13 and $0.278250, and Series K at $1,250.00 and $12.500000.
The Charles Schwab Corporation, listed on the NYSE under the ticker SCHW, is a major player in the financial services sector, managing 36.0 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and overseeing $9.92 trillion in client assets. The company, through its subsidiaries, offers various wealth management, securities brokerage, banking, asset management, custody, and financial advisory services for individual investors and independent investment advisors.
This announcement is based on a press release statement from The Charles Schwab Corporation.
In other recent news, Charles Schwab Corporation reported a strong third quarter for 2024, with a 5% year-over-year increase in revenue to $4.8 billion and adjusted earnings per share of $0.77. As part of the recent developments, the company reduced its supplemental funding by $9 billion, improving the adjusted Tier 1 Leverage ratio to 6.7%. Net new assets more than doubled compared to the same quarter last year, indicating robust client engagement.
Analysts from Jefferies, Goldman Sachs (NYSE:GS), Citi, and Barclays (LON:BARC) have updated their outlooks on Charles Schwab. Jefferies raised its price target to $84, maintaining a Buy rating, while Goldman Sachs held a $74 target with a Neutral stance. Citi increased its price target to $75, and Barclays raised its target to $74, both maintaining a neutral stance.
Charles Schwab anticipates a 2-3% revenue growth for 2024 and plans to introduce new retail alternatives in the fourth quarter. However, due to potential macroeconomic uncertainties, the company has adjusted its net interest margin expectations for the end of 2025. Finally, a leadership transition is underway, with CEO Walt Bettinger set to depart and Rick Wurster to assume the role in January 2024.
InvestingPro Insights
The Charles Schwab Corporation's recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, Schwab has maintained dividend payments for an impressive 36 consecutive years, demonstrating its commitment to consistent shareholder value. This consistency is particularly noteworthy given the company's current dividend yield of 1.41%.
Despite the challenges faced by the financial sector, Schwab's financial health appears robust. The company boasts a market capitalization of $131.16 billion, reflecting its significant presence in the industry. Moreover, with a price-to-earnings ratio of 27.89, investors are showing confidence in Schwab's future earnings potential.
InvestingPro Tips highlight that 15 analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook for the company's financial performance. This optimism is further supported by another InvestingPro Tip indicating that analysts predict the company will be profitable this year.
It's worth noting that Schwab's revenue for the last twelve months stood at $18.74 billion, with a remarkable gross profit margin of 96.78%. This high margin underscores the company's operational efficiency and its ability to generate substantial profits from its revenue streams.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics that could provide a deeper understanding of Schwab's financial position and future prospects. Currently, there are 13 more tips available on the InvestingPro platform for SCHW.
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