Schwab Authorizes $1 Billion Stock Repurchase, Declares Common Stock Dividend, and Declares Preferred Stock Dividends

Thursday, October 25, 2018 3:09 pm PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW

SAN FRANCISCO--(BUSINESS WIRE)--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 quarterly cash dividend of $0.13 per common share. The dividend is payable November 23, 2018 to stockholders of record as of the close of business on November 9, 2018.

The Share Repurchase Program previously had $596 million of share repurchases remaining under two prior authorizations. The Board’s decision today has replaced these authorizations with approval to repurchase a total of $1 billion of its common stock. Shares may be repurchased through open market or privately negotiated transactions based on prevailing market conditions. As of September 30, 2018, the company had 1.36 billion weighted average common and common equivalent shares outstanding.

Chairman Charles Schwab commented, “Our common dividend and Share Repurchase Program reflect our strong balance sheet, liquidity and capital position, as well as our confidence in the company’s long-term prospects. We are continuing to generate more than enough reserves to support ongoing business growth and can now begin accelerating returns to stockholders as part of maintaining an appropriate capital level and mix.”

In addition, the Board of Directors of The Charles Schwab Corporation 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 December 3, 2018 to stockholders of record at the close of business on November 16, 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 December 3, 2018 to stockholders of record at the close of business on November 16, 2018.

The Board of Directors of The Charles Schwab Corporation has also declared a regular semi-annual dividend on the outstanding Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, in the amount of $2,500 per share or $25 per depositary share, each representing 1/100th interest in a share of Series F Preferred Stock. The dividend is payable December 3, 2018 to stockholders of record at the close of business on November 16, 2018.

CFO Peter Crawford added, “We intend to execute this repurchase authorization over the next few months; our initial activity will address recent growth in our outstanding common share count, which mostly reflects employee equity grants. As we complete the transfer of client cash sweep balances onto our balance sheet in coming months, we will work with our Board of Directors to further assess the company’s capital requirements and implement an updated approach for returning excess resources to stockholders. We expect to share more details at our Winter Business Update.”

Forward-Looking Statements

This press release contains forward-looking statements relating to generating reserves; business growth; returns to stockholders; and stock repurchases. 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, equity valuations, and trading activity; the company’s ability to attract and retain clients and grow client assets; competitive pressures on pricing, including deposit rates; the level of client assets, including cash balances; the timing and amount of transfers to bank sweep; client sensitivity to interest rates; regulatory guidance; capital and liquidity needs and management; the company’s ability to manage expenses; and other factors set forth in the company’s most recent report on Form 10-K.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 350 offices and 11.4 million active brokerage accounts, 1.6 million corporate retirement plan participants, 1.3 million banking accounts, and $3.56 trillion in client assets as of September 30, 2018. 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.

Contact:

MEDIA:
Charles Schwab
Mayura Hooper, 415-667-1525
or
INVESTORS/ANALYSTS:
Charles Schwab
Rich Fowler, 415-667-1841

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