Schwab Declares Common Stock Dividend and Declares Preferred Stock Dividends

Rhea-AI Summary

The Charles Schwab Corporation declared a regular quarterly cash dividend of $0.25 per common share, payable on February 23, 2024. Dividends were also declared on various series of outstanding preferred stock, payable on March 1, 2024. The dividend amounts for each series of preferred stock were specified in the press release.

Insights

Financial Analyst

The declaration of a regular quarterly cash dividend by The Charles Schwab Corporation represents a continued commitment to return value to shareholders. At $0.25 per common share, the dividend yield should be assessed against the industry average and the company's historical payouts to gauge its attractiveness. Additionally, the payment of dividends on various series of preferred stock underlines the company's adherence to its financial obligations towards preferred shareholders, who typically receive dividends before common shareholders.

Investors often view regular dividend payments as a sign of a company's financial health and stability. It can also be indicative of a mature company with a consistent cash flow, which may appeal to income-focused investors. However, it's crucial to analyze the payout ratio to ensure that the company is not over-distributing earnings at the expense of reinvestment and growth opportunities.

Market Research Analyst

An analysis of the dividend announcement should consider the broader market implications. The financial sector, where Charles Schwab operates, is sensitive to interest rate changes and economic cycles. As dividends are often funded by earnings, the company's ability to maintain or increase dividends over time can be an indicator of its competitive position and the robustness of its business model in the face of market volatility.

Furthermore, the specific rates for the preferred stock dividends reflect the company's capital structure strategy. These rates, especially for perpetual preferred stock, which has no maturity date, can be compared with bond yields to understand investor sentiment towards the company's debt and overall risk profile.

Economist

From an economic perspective, dividend declarations can signal management's confidence in the company's future earnings and economic outlook. The consistency and size of dividend payments can be interpreted in the context of macroeconomic conditions. For instance, in a low-interest-rate environment, dividend-paying stocks may become more attractive relative to fixed-income securities, potentially influencing stock demand and prices.

It's also worth considering the impact of such declarations on consumer spending. For individual investors, especially those relying on dividend income, such payments can contribute to their disposable income, potentially affecting broader economic consumption patterns.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Board of Directors of The Charles Schwab Corporation at its meeting today declared a regular quarterly cash dividend of $0.25 per common share. The dividend is payable February 23, 2024 to stockholders of record as of the close of business on February 9, 2024.

In addition, the Board of Directors also declared dividends on the following series of outstanding preferred stock, payable March 1, 2024 to stockholders of record as of the close of business on February 15, 2024:

Preferred Stock Series	Dividend Per Share		Dividend Per Depositary Share
5.95% Non-Cumulative Perpetual Preferred Stock, Series D Dividend Period: December 1, 2023-February 29, 2024	$14.88		$0.372000
5.375% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G Dividend Period: December 1, 2023-February 29, 2024	$1,343.75		$13.437500
4.000% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series H Dividend Period: December 1, 2023-February 29, 2024	$1,000.00		$10.000000
4.000% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I Dividend Period: December 1, 2023-February 29, 2024	$1,000.00		$10.000000
4.450% Non-Cumulative Perpetual Preferred Stock, Series J Dividend Period: December 1, 2023-February 29, 2024	$11.13		$0.278250
5.000% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series K Dividend Period: December 1, 2023-February 29, 2024	$1,250.00		$12.500000

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 34.8 million active brokerage accounts, 5.2 million workplace plan participant accounts, 1.8 million banking accounts, and $8.52 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, https://www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com. TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding LLC. TD Ameritrade Holding LLC is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124962599/en/

MEDIA:

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Source: The Charles Schwab Corporation

FAQ

What is the amount of the regular quarterly cash dividend declared per common share?

The regular quarterly cash dividend declared per common share is $0.25.

When is the regular quarterly cash dividend payable to stockholders of record?

The regular quarterly cash dividend is payable on February 23, 2024 to stockholders of record as of the close of business on February 9, 2024.

What are the dividend amounts and payable dates for the outstanding preferred stock?

The dividend amounts and payable dates for the outstanding preferred stock are as follows: - Preferred Stock Series D: $14.88 per share, payable on March 1, 2024 - Preferred Stock Series G: $1,343.75 per share, payable on March 1, 2024 - Preferred Stock Series H: $1,000.00 per share, payable on March 1, 2024 - Preferred Stock Series I: $1,000.00 per share, payable on March 1, 2024 - Preferred Stock Series J: $11.13 per share, payable on March 1, 2024 - Preferred Stock Series K: $1,250.00 per share, payable on March 1, 2024.