The Charles Schwab Co. (NYSE:SCHW) Plans Dividend Increase – $0.27 Per Share

The Charles Schwab Co. (NYSE:SCHW) announced a quarterly dividend on Wednesday, January 29th,RTT News reports. Investors of record on Friday, February 14th will be paid a dividend of 0.27 per share by the financial services provider on Friday, February 28th. This represents a $1.08 dividend on an annualized basis and a yield of 1.29%. The ex-dividend date of this dividend is Friday, February 14th. This is a boost from Charles Schwab’s previous quarterly dividend of $0.25.

Charles Schwab has raised its dividend payment by an average of 11.6% per year over the last three years. Charles Schwab has a payout ratio of 20.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Charles Schwab to earn $5.19 per share next year, which means the company should continue to be able to cover its $1.08 annual dividend with an expected future payout ratio of 20.8%.

Charles Schwab Stock Up 2.9 %

Shares of NYSE:SCHW opened at $83.51 on Wednesday. The company has a market capitalization of $148.61 billion, a PE ratio of 27.93, a price-to-earnings-growth ratio of 1.02 and a beta of 0.99. Charles Schwab has a 1 year low of $61.01 and a 1 year high of $84.50. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.47 and a quick ratio of 0.47. The business has a fifty day moving average price of $77.99 and a two-hundred day moving average price of $71.99.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings results on Tuesday, January 21st. The financial services provider reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.11. The company had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.19 billion. Charles Schwab had a net margin of 30.31% and a return on equity of 18.20%. The firm’s revenue for the quarter was up 19.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.68 earnings per share. Analysts forecast that Charles Schwab will post 4.18 earnings per share for the current year.

Insider Buying and Selling at Charles Schwab

In related news, Director Christopher V. Dodds sold 9,284 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $81.43, for a total transaction of $755,996.12. Following the transaction, the director now owns 442,807 shares in the company, valued at $36,057,774.01. The trade was a 2.05 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Peter J. Morgan III sold 14,643 shares of the firm’s stock in a transaction dated Wednesday, January 22nd. The stock was sold at an average price of $80.70, for a total transaction of $1,181,690.10. The disclosure for this sale can be found here. Insiders sold a total of 47,514 shares of company stock worth $3,859,731 over the last three months. Company insiders own 6.60% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on SCHW shares. JPMorgan Chase & Co. lifted their price target on shares of Charles Schwab from $87.00 to $93.00 and gave the stock an “overweight” rating in a report on Tuesday, January 7th. Citigroup boosted their target price on Charles Schwab from $80.00 to $85.00 and gave the company a “neutral” rating in a research note on Wednesday, January 22nd. Piper Sandler increased their price target on Charles Schwab from $65.00 to $70.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 7th. Bank of America lowered their price objective on Charles Schwab from $63.00 to $61.00 and set an “underperform” rating on the stock in a research note on Wednesday, October 16th. Finally, The Goldman Sachs Group upped their price objective on shares of Charles Schwab from $67.00 to $74.00 and gave the company a “neutral” rating in a report on Wednesday, October 16th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and nine have given a buy rating to the stock. According to MarketBeat.com, Charles Schwab presently has an average rating of “Hold” and a consensus price target of $84.56.

Charles Schwab Company Profile

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.