The Charles Schwab Corporation - SCHW STOCK NEWS

The Charles Schwab Corporation has reached a $186.5 million settlement with the SEC regarding historical disclosures related to its Schwab Intelligent Portfolios (SIP) from 2015-2018. Although Schwab neither admits nor denies the allegations, this settlement aims to resolve the investigation and allows the company to focus on client services. The settlement involves Schwab Wealth Investment Advisory and Charles Schwab Investment Advisory, and funds will be distributed to affected investors. Since its launch, SIP has provided automated, diversified portfolios to hundreds of thousands of clients.

The SDBA Indicators Report from Charles Schwab reveals that the average account balance across self-directed brokerage accounts (SDBAs) in Q1 2022 was $332,017, representing a 0.51% decline year-over-year and a 6.25% drop from Q4 2021. Despite market volatility due to external factors like Federal Reserve changes and the Ukraine conflict, participants maintained similar investment patterns, with individual equities comprising 36% of assets. Average advised account balances were substantially higher at $525,254.

The Charles Schwab Corporation has declared a dividend of $15.60 per share on its 7.000% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, payable on August 1, 2022. Stockholders of record as of the close of business on July 15, 2022 will receive this dividend. As of April 30, 2022, the company reported approximately $7.28 trillion in client assets, highlighting its significant position in the financial services market.

The Charles Schwab Corporation's Monthly Activity Report for April 2022 revealed significant client cash disbursements, totaling negative $9.2 billion in net new assets. Excluding mutual fund clearing, the negative total stands at $6.5 billion. Total client assets reached $7.28 trillion, marking a 1% decline year-on-year and a 7% decrease from March 2022. Average interest-earning assets increased by 21% year-over-year to $636.7 billion. CFO Peter Crawford noted that the high outflows during tax season reflect past portfolio actions, hinting at potential future rebalancing as interest rates rise.

Charles Schwab has unveiled the Champion’s Prize for the 2022 Charles Schwab Challenge, featuring a restored 1979 Schwab Firebird, commemorating a pivotal year in the firm's tech investments. The PGA TOUR event will take place from May 26-29 in Fort Worth, Texas. Additionally, country singer Jake Owen has recorded a new version of 'East Bound and Down' to celebrate the Firebird. This is Schwab's fourth consecutive year as the title sponsor, highlighting its commitment to innovation and the local golf community.