WESTLAKE, Texas - The Charles Schwab Corporation (NYSE: NYSE:SCHW) announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. Stockholders on record by the close of business on August 9, 2024, will be eligible for the dividend, which is payable on August 23, 2024.
In addition to the common stock dividend, the Board has also declared dividends on several series of preferred stock. Stockholders of record by August 19, 2024, will receive dividends payable on September 3, 2024.
The dividends per share for the preferred stock series are as follows: Series D at $0.372000, Series G at $13.437500, Series H and I both at $10.000000, Series J at $0.278250, and Series K at $12.500000. These dividends correspond to the dividend period from June 1, 2024, to August 31, 2024.
The Charles Schwab Corporation, a financial services leader, manages 35.6 million active brokerage accounts, 5.4 million workplace plan participant accounts, 1.9 million banking accounts, and oversees $9.41 trillion in client assets.
The company operates through its subsidiaries, offering a broad range of services including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Charles Schwab & Co., Inc., its broker-dealer subsidiary, along with its affiliates, provides a variety of investment services and products.
Schwab Advisor Services supports independent, fee-based investment advisors with custodial, operational, and trading services. Charles Schwab Bank, SSB, the company's primary banking subsidiary, offers banking and lending services and products.
This dividend announcement is based on a press release statement from The Charles Schwab Corporation.
In other recent news, Charles Schwab Corporation has seen significant growth in its latest earnings call, with net new assets surpassing $150 billion and nearly 1 million new brokerage accounts established.
The wealth business of Schwab also experienced a 56% year-over-year increase in net flows, now standing at $25 billion. Despite these positive developments, earnings are expected to be flat from Q2 to Q3 due to the FDIC surcharge.
The company has revealed a strategic shift toward a hybrid bank model, transferring excess deposits to third-party banks, a move which may impact net interest income. This decision, along with a shortfall in deposit growth, has led to stock price target reductions by BofA Securities, Deutsche Bank (ETR:DBKGn), and JPMorgan (NYSE:JPM).
In response to these changes, Charles Schwab intends to enhance lending capabilities and client experience, expecting a rise in net interest margin to 3% by the end of 2025, and a return to robust revenue and earnings growth starting late 2024. These are among the recent developments at Charles Schwab Corporation.
InvestingPro Insights
In light of The Charles Schwab Corporation's (NYSE: SCHW) recent dividend declaration, examining the company's financial health and market performance can provide investors with a clearer picture of its current standing. According to InvestingPro data, SCHW has a market capitalization of $117.04 billion and maintains a price-to-earnings (P/E) ratio of 26.64, which adjusts to 23.93 on a last twelve months basis as of Q2 2024. Despite a revenue decline of 11.15% over the last twelve months as of Q2 2024, the company has a robust gross profit margin of 96.71%.
InvestingPro Tips indicate that analysts have recently revised their earnings expectations downward for SCHW, suggesting potential caution among market observers regarding the company's short-term earnings potential. Moreover, SCHW's stock performance has seen a downturn over the last month, with a 1-month price total return of -12.6% as of the data provided.
On a more positive note, Schwab has demonstrated a strong commitment to returning value to shareholders, having maintained dividend payments for an impressive 36 consecutive years. Moreover, analysts remain optimistic about the company's profitability for the current year.
For investors looking for a deeper dive into The Charles Schwab Corporation's financials and future outlook, more InvestingPro Tips are available, providing valuable insights that could inform investment decisions. To explore these further, visit https://www.investing.com/pro/SCHW and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 14 additional InvestingPro Tips available for SCHW, offering a comprehensive analysis for those interested in the company's prospects.
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