Schwab Authorizes $4 Billion Stock Repurchase, Declares 31% Increase in Quarterly Common Stock Dividend, and Declares Preferred Stock Dividends
SAN FRANCISCO--(BUSINESS WIRE)--Jan 30, 2019--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 4 cent, or 31% increase in the quarterly cash dividend to $0.17 per common share. The dividend is payable February 28, 2019 to stockholders of record as of the close of business on February 14, 2019.
The Share Repurchase Program previously had $1 billion of repurchases authorized in October 2018. That authorization was completed by year-end 2018, with a total of 22.3 million shares acquired. Under the new $4 billion authorization, shares may be repurchased through open market or privately negotiated transactions based on prevailing market conditions. As of December 31, 2018 the company had 1.36 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 2018 performance as well as our confidence in the long-term success of the company. We see these actions as part of an overall evolution of the Schwab story to include both strong business growth and meaningful capital return.”
In addition, the Board of Directors 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, 2019 to stockholders of record at the close of business on February 14, 2019.
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, 2019 to stockholders of record at the close of business on February 14, 2019.
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, 2019 to stockholders of record at the close of business on February 14, 2019.
CFO Peter Crawford added, “In working with our Board of Directors, we assessed the company’s capital requirements and developed this updated approach for returning excess resources to stockholders. 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.”
This press release contains forward-looking statements relating to business growth; returns to stockholders; and surplus capital. 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 355 offices and 11.6 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.3 million banking accounts, and $3.25 trillion in client assets as of December 31, 2018. 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://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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KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING CONSULTING FINANCE
SOURCE: The Charles Schwab Corporation
Copyright Business Wire 2019.
PUB: 01/30/2019 05:34 PM/DISC: 01/30/2019 05:34 PM