Schwab (CHARLES) Corp. (The) Stock Price, News & Analysis

Black investing participation remains stagnant, with only 58% of Black Americans owning stocks in 2022, down from 74% in 2002. In contrast, 63% of white Americans hold stocks, down from 86% in 2015. Notably, 68% of Black investors under 40 are investing, compared to 57% of white investors. Younger Black investors are gravitating towards cryptocurrency, with 25% owning it, and 38% of those under 40. The study highlights a significant education gap, with many Black investors trusting less credible sources. Despite improvements, Black Americans save significantly less than their white counterparts, at $657 vs. $857 monthly.

The Charles Schwab Corporation is set to launch Schwab Personalized Indexing™, a new direct indexing solution aimed at enhancing portfolio and tax management for more investors and advisors. Expected by late April, this initiative reduces the investment minimum to $100,000, offering competitive fees starting at 0.40%, which is lower than many existing options. Schwab Personalized Indexing is designed to allow investors to directly own securities and optimize tax management strategies through technology and expertise, with plans for further strategies and features in the coming year.

The Charles Schwab Corporation (NYSE: SCHW) announced a dividend of $12.70 per share on its 7.000% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. This dividend will be payable on May 2, 2022, to stockholders of record by April 15, 2022. The dividend period covers February 1, 2022 to April 30, 2022. As of February 28, 2022, the company holds $7.69 trillion in client assets and serves over 33.4 million active brokerage accounts.

Schwab Retirement Plan Services reports a 33% increase in virtual education session attendance in 2021, driven by the pandemic's shift to digital learning. The number of onsite meetings dropped significantly, with 93% of sessions held virtually. A key finding was that 42% of workers preferred on-demand sessions, contributing to a 69% reduction in cancellations compared to 2019. The virtual format proved effective, with 93% of participants feeling better prepared for financial decisions. Going forward, Schwab will maintain a hybrid approach, blending virtual and in-person sessions.

The Charles Schwab Corporation's Monthly Activity Report for February 2022 reveals core net new assets totaling $40.6 billion, with total client assets reaching $7.69 trillion, up 11% year-over-year. However, this is a 2% decline from January 2022. Average margin balances increased by 22% year-over-year but decreased 3% from January. CFO Peter Crawford noted that market conditions, influenced by events in Ukraine, have lowered client assets and margin balances by 6% and 5% respectively since December. Revenue per trade has also declined by 5-10%.

Schwab Advisor Services is launching a new event called ENGAGE on April 26, aimed at independent advisors managing up to $300 million in client assets. This virtual event will feature prominent leaders, including Bernie Clark and Liz Ann Sonders, offering insights into best practices and market outlooks. The ENGAGE event is part of Schwab's broader initiative to support smaller firms through tailored resources and education. Other upcoming events include ADVANTAGE in March and IMPACT in November, reflecting Schwab's commitment to advisor growth.

Charles Schwab's SDBA Indicators Report for Q4 2021 reveals an average account balance of $352,764, reflecting a year-over-year increase of 6.4%. The report highlights a shift in investment holdings where equities now account for 37% of participant assets, up from 35% in 2020. Notably, advised accounts show higher average balances of $558,470 compared to non-advised accounts, which had $304,164. The data is based on approximately 178,000 retirement plan participants.