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

The Charles Schwab Co. (NYSE:SCHW) declared a quarterly dividend on Wednesday, January 29th,RTT News reports. Stockholders 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 annualized dividend and a dividend yield of 1.31%. 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 19.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Charles Schwab to earn $5.11 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 19.6%.

Charles Schwab Stock Performance

Shares of NYSE SCHW opened at $82.13 on Thursday. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.47 and a current ratio of 0.47. The stock has a 50 day moving average price of $77.86 and a 200 day moving average price of $70.92. The stock has a market capitalization of $146.17 billion, a PE ratio of 27.47, a price-to-earnings-growth ratio of 1.46 and a beta of 0.99. Charles Schwab has a 52 week low of $61.01 and a 52 week high of $83.35.

Charles Schwab (NYSE:SCHW) last released its quarterly earnings data on Tuesday, January 21st. The financial services provider reported $1.01 EPS for the quarter, beating the consensus estimate of $0.90 by $0.11. Charles Schwab had a return on equity of 18.20% and a net margin of 30.31%. The company had revenue of $5.33 billion during the quarter, compared to the consensus estimate of $5.19 billion. During the same quarter in the prior year, the firm posted $0.68 EPS. The firm’s revenue for the quarter was up 19.5% compared to the same quarter last year. Analysts predict that Charles Schwab will post 4.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, General Counsel Peter J. Morgan III sold 14,643 shares of the company’s stock in a transaction that occurred on Wednesday, January 22nd. The shares were sold at an average price of $80.70, for a total transaction of $1,181,690.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Arun Sarin sold 8,548 shares of the business’s stock in a transaction that occurred on Thursday, January 23rd. The shares were sold at an average price of $81.82, for a total transaction of $699,397.36. Following the transaction, the director now owns 18,617 shares of the company’s stock, valued at approximately $1,523,242.94. This represents a 31.47 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 50,014 shares of company stock valued at $4,052,281 over the last 90 days. 6.60% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Wells Fargo & Company upgraded shares of Charles Schwab from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $89.00 to $93.00 in a research note on Wednesday, January 22nd. JPMorgan Chase & Co. raised their price objective on Charles Schwab from $87.00 to $93.00 and gave the company an “overweight” rating in a research report on Tuesday, January 7th. Raymond James decreased their target price on Charles Schwab from $76.00 to $73.00 in a report on Tuesday, October 15th. StockNews.com raised shares of Charles Schwab from a “sell” rating to a “hold” rating in a research report on Wednesday, October 16th. Finally, Piper Sandler increased their price objective on shares of Charles Schwab from $65.00 to $70.00 and gave the company a “neutral” rating in a research report on Tuesday, January 7th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and nine have given a buy rating to the stock. According to MarketBeat, Charles Schwab has a consensus rating of “Hold” and an average target price of $84.11.

About Charles Schwab

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.