The Board of Directors of The Charles Schwab Corporation at its
meeting today authorized additional repurchases of the company’s
common stock and declared a 2 cent, or 10% increase in the
quarterly cash dividend to $0.22 per common share. The dividend is
payable August 26, 2022 to stockholders of record as of the close
of business on August 12, 2022.
The Share Repurchase Program previously had $1.8 billion of
share repurchases remaining under a prior authorization. The
Board’s decision today has replaced this authorization with
approval to repurchase a total of $15 billion of its common stock.
Shares may be repurchased through open market or privately
negotiated transactions based on prevailing market conditions. For
the quarter ended June 30, 2022 the company had 1.904 billion
weighted-average common and common equivalent shares
outstanding.
Chairman Charles Schwab commented, “The Board’s decisions
regarding the Share Repurchase Program and common stock dividend
increase reflect Schwab’s recent financial performance as well as
our confidence in the long-term prospects of the company. We see
these actions as part of an overall evolution of the Schwab story
to include both strong business growth and significant capital
return.”
In addition, the Board of Directors also declared dividends on
the following series of outstanding preferred stock, payable
September 1, 2022 to stockholders of record as of the close of
business on August 17, 2022:
Preferred Stock Series
Dividend Per Share
Dividend Per Depositary
Share
5.95% Non-Cumulative Perpetual Preferred
Stock, Series D
Dividend Period: June 1, 2022-August 31,
2022
$14.88
$0.372000
4.625% Fixed-to-Floating Rate
Non-Cumulative Perpetual Preferred Stock, Series E (in floating
rate period)
Dividend Period: June 1, 2022-August 31,
2022
$1,251.05
$12.510500
5.375% Fixed-Rate Reset Non-Cumulative
Perpetual Preferred Stock, Series G
Dividend Period: June 1, 2022-August 31,
2022
$1,343.75
$13.437500
4.000% Fixed-Rate Reset Non-Cumulative
Perpetual Preferred Stock, Series H
Dividend Period: June 1, 2022-August 31,
2022
$1,000.00
$10.000000
4.000% Fixed-Rate Reset Non-Cumulative
Perpetual Preferred Stock, Series I
Dividend Period: June 1, 2022-August 31,
2022
$1,000.00
$10.000000
4.450% Non-Cumulative Perpetual Preferred
Stock, Series J
Dividend Period: June 1, 2022-August 31,
2022
$11.13
$0.278250
5.000% Fixed-Rate Reset Non-Cumulative
Perpetual Preferred Stock, Series K
Dividend Period: June 1, 2022-August 31,
2022
$1,250.00
$12.500000
CFO Peter Crawford added, “The combination of our strong balance
sheet, expanding earnings power, and increased capital levels
creates an opportunity for significant capital return beginning as
soon as later this year. While there is no set timeline for the
repurchase activity, growth of the business remains our primary
focus and we intend to execute this authorization as we generate
surplus capital.”
Forward-Looking Statements
This press release contains forward-looking statements relating
to business growth; returns to stockholders; earnings; capital
levels; and surplus capital. These forward-looking statements
reflect management’s expectations as of the date hereof.
Achievement of these expectations and objectives is subject to
risks and uncertainties that could cause actual results to differ
materially from the expressed expectations.
Important factors that may cause such differences include, but
are not limited to, the company’s ability to attract and retain
clients and independent investment advisors and grow those
relationships and client assets; develop and launch new and
enhanced products, services, and capabilities, as well as enhance
its infrastructure and capacity, in a timely and successful manner;
hire and retain talent; support client activity levels;
successfully implement integration strategies and plans; manage
expenses; and monetize client assets. Other important factors
include client use of the company’s advisory solutions and other
products and services; general market conditions, including equity
valuations and the level of interest rates; the level and mix of
client trading activity; market volatility; margin loan balances;
securities lending; client cash sorting; client sensitivity to
rates; level of client assets, including cash balances; capital and
liquidity needs and management; balance sheet positioning relative
to changes in interest rates; interest earning asset mix and
growth; the migration of bank deposit account balances; and other
factors set forth in the company’s most recent reports on Form 10-K
and Form 10-Q.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading
provider of financial services, with 33.9 million active brokerage
accounts, 2.3 million corporate retirement plan participants, 1.7
million banking accounts, and $6.83 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, 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 www.aboutschwab.com.
TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are
separate but affiliated companies and subsidiaries of TD Ameritrade
Holding Corporation. TD Ameritrade Holding Corporation 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220727005919/en/
MEDIA: Mayura Hooper Charles Schwab Phone:
415-667-1525
INVESTORS/ANALYSTS: Jeff Edwards Charles Schwab Phone:
415-667-1524
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