The Charles Schwab Corporation Anticipates Economic Strength in 2018
January 25 2018 - 5:24PM
Business Wire
Company Declares Increase in Quarterly Common
Stock Dividend and Declares Preferred Stock Dividends
Chairman of the Board, Charles R. Schwab commented today, “With
the global economy already on a positive path, the recent tax
reform enacted by Congress and signed into law in late 2017
provided new fuel for economic growth in 2018 and we expect it to
be a stimulus for the market as investors anticipate the positive
impact tax reductions will have on U.S. businesses. As just one
example, our firm will see a reduction in its tax obligation of
approximately one third, which reinforces our confidence in making
ongoing investments in our business.”
President and CEO, Walt Bettinger commented, “In 2017,
anticipating the tax law change and in response to the company’s
strong financial performance and our employees’ unwavering
commitment to clients, Schwab provided a special $1,000 bonus for
about 9,000 non-executive employees. Based on the favorable
environment, we also continued hiring staff across the firm’s
geographic locations, adding over 1,200 net new employees, and we
allocated part of our 11% overall spending increase to support
client service efforts and continue to build out new business
centers in Austin and Dallas that will allow us to house over 4,000
new employees in the next two years. Additionally, we expanded
parental leave benefits for all Schwab employees and increased the
annual corporate contribution to philanthropy to benefit our local
communities.”
Mr. Schwab concluded, “Recent tax reform legislation, low
unemployment, and strong growth across a wide spectrum of
industries are all positive signs for the U.S. economy. Schwab is
preparing for a strong 2018, with continued investments to better
serve clients, recruit and retain world-class talent, contribute to
our local communities, and increase returns to Schwab
stockholders.”
In addition to the firm’s plans to fund growth initiatives, the
Board of Directors of The Charles Schwab Corporation at its meeting
today increased the quarterly cash dividend by $0.02, or 25%, to
$0.10 per common share. The dividend is payable February 23, 2018
to stockholders of record as of the close of business on February
9, 2018. The new dividend rate is consistent with the company’s
target range of approximately 20 - 30 percent of net income.
The Board of Directors of The Charles Schwab Corporation has
also declared a regular quarterly dividend on the outstanding Fixed
Rate Non-Cumulative Perpetual Preferred Stock, Series C, in the
amount of $15.00 per share or $0.375 per depositary share, each
representing 1/40th interest in a share of Series C Preferred
Stock. The dividend is payable March 1, 2018 to stockholders of
record at the close of business on February 14, 2018.
The Board of Directors of The Charles Schwab Corporation has
also declared a regular quarterly dividend on the outstanding Fixed
Rate Non-Cumulative Perpetual Preferred Stock, Series D, in the
amount of $14.88 per share or $0.372 per depositary share, each
representing 1/40th interest in a share of Series D Preferred
Stock. The dividend is payable March 1, 2018 to stockholders of
record at the close of business on February 14, 2018.
The Board of Directors of The Charles Schwab Corporation has
also declared a regular semi-annual dividend on the outstanding
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series E, in
the amount of $2,312.50 per share or $23.125 per depositary share,
each representing 1/100th interest in a share of Series E Preferred
Stock. The dividend is payable March 1, 2018 to stockholders of
record at the close of business on February 14, 2018.
Forward-Looking Statements
This press release contains forward-looking statements relating
to economic strength in 2018, tax reduction, returns to
stockholders, and target dividend range. 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, general market conditions, including the level
of interest rates and equity valuations; the company’s ability to
attract and retain clients and registered investment advisors and
grow those relationships and client assets; competitive pressures
on pricing, including deposit rates; the timing and amount of bulk
transfers; the quality of the company’s balance sheet assets;
client sensitivity to interest rates; regulatory guidance; 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 more than 345 offices and
10.8 million active brokerage accounts, 1.6 million corporate
retirement plan participants, 1.2 million banking accounts,
and $3.36 trillion in client assets as of December 31, 2017.
Through its operating subsidiaries, the company provides a full
range of wealth management, securities brokerage, banking, money
management, custody, and financial advisory services to individual
investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member
SIPC, www.sipc.org), and 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 banking
subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing
Lender), provides banking and lending services and products. More
information is available
at www.schwab.com and www.aboutschwab.com.
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MEDIA:Charles SchwabMayura Hooper,
415-667-1525orINVESTORS/ANALYSTS:Charles SchwabRich Fowler,
415-667-1841
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