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

Charles Schwab (SCHW) has declared a quarterly cash dividend of $0.25 per common share, payable November 22, 2024, to stockholders of record as of November 8, 2024. Additionally, the company announced dividends on seven series of preferred stock, all payable December 2, 2024, to stockholders of record as of November 15, 2024. The preferred stock dividends range from $0.278250 to $25.000000 per depositary share across different series, including Series D, F, G, H, I, J, and K, with varying fixed and fixed-to-floating rates.

According to Charles Schwab's 2024 401(k) Participant Study, workers' financial health shows slight improvement, with 24% reporting very good financial health compared to 20% last year. The study reveals that 64% of workers acknowledge their employers' efforts to help manage financial stress, up from 52% in 2023.

Key employer actions include salary increases (39%), flexible work arrangements (19%), and increased 401(k) match (18%). Notably, 84% of workers value flexible work arrangements, with 57% willing to sacrifice salary increases for work autonomy. The study also highlights growing interest in SECURE 2.0 Act provisions, with 32% of workers seeking guidance on how these changes affect their retirement plans.

Charles Schwab reported strong Q3 2024 results, with total client assets reaching a record $9.92 trillion, up 27% year-over-year. Core net new assets totaled $95.3 billion for the quarter, bringing the year-to-date total to $252.1 billion, a 10% increase from 2023. Net revenues grew 5% year-over-year to $4.8 billion, while net income reached $1.4 billion, or $0.71 per diluted share. Adjusted earnings per share were $0.77.

The company saw robust client engagement, with active brokerage accounts up 4% to 36.0 million. Managed Investing net flows reached $40 billion year-to-date, a 65% increase from 2023. The adjusted pre-tax profit margin was 41.2%, reflecting revenue growth and expense discipline. Client transactional sweep cash grew by $9 billion sequentially, allowing for a $8.9 billion reduction in Bank Supplemental Funding.

Dynasty Financial Partners has successfully closed a minority capital raise to fuel its ongoing growth. The round was supported by long-standing investors, Board members, and strategic investors including The Charles Schwab , BlackRock, and J.P. Morgan Asset Management. All proceeds will be invested in enhancing Dynasty's platform to better serve its clients.

CEO Shirl Penney expressed excitement about the investment, which will enable significant improvements in technology, talent, and capabilities. The company's network consists of 58 partner firms representing over 400 advisors with over $100 billion in platform assets. Dynasty also has a $50 million unused credit facility from major banks for additional growth capital.

Chairman Harvey Golub highlighted the significance of backing from major financial institutions, viewing it as a testament to the growth of the RIA space and Dynasty's role in driving positive industry change.

The Schwab Trading Activity Index™ (STAX) decreased to 47.10 in September from 53.16 in August, marking the largest decline since June 2022. Schwab clients were net sellers of equities, particularly in Information Technology, Consumer Discretionary, and Communication Services sectors. They were net buyers in Energy and Consumer Staples.

The September STAX period was influenced by significant economic data, including a 50-basis point reduction in the Fed Funds rate. Despite market highs, clients de-risked portfolios, shifting from equities to fixed income. The S&P 500 and Dow Jones Industrial Average reached new highs, while the Nasdaq Composite closed up 2.68%.

Popular stocks bought included NVIDIA, Palantir, and Intel, while stocks sold included Tesla, AMD, and Alibaba. The VIX closed 13% higher at 16.96, and WTI Crude Oil futures fell by 7.30%.

The Charles Schwab has announced that Walt Bettinger will retire as CEO on December 31, 2024, as part of a multi-year succession plan. Rick Wurster, currently President of Schwab, will become President and CEO and join the Board of Directors on January 1, 2025. Bettinger will continue as Executive Co-Chairman of the Board alongside founder Charles R. Schwab.

During Bettinger's tenure as CEO since 2008, Schwab has seen significant growth:

• Client assets grew from $1.14 trillion to $9.74 trillion
• Client accounts increased from 9.3 million to 43.2 million
• Schwab's stock value rose 400% to approximately $65 per share
• Market capitalization grew 660% to about $119 billion

Bettinger expressed confidence in Wurster's leadership, citing his intelligence, integrity, and character. Charles Schwab praised Bettinger's successful tenure and supported Wurster as the next CEO, ensuring continuity for clients, employees, and stockholders.

Schwab Retirement Plan Services has secured the top spot in the J.D. Power 2024 U.S. Retirement Plan Digital Experience Study, marking its sixth top ranking in seven years. The company scored 753 out of 1000, 50 points above the industry average. Schwab excelled in key areas such as Navigation, Visual Appeal, and Information/Content.

Lee McAdoo, Managing Director, emphasized the significance of this achievement, highlighting Schwab's commitment to their 'Through Clients' Eyes' strategy and the growing importance of digital channels for plan participants. The company's consistent high performance demonstrates its dedication to providing best-in-class digital experiences for investors and supporting workplace financial journeys.

Charles Schwab has announced its Fall Business Update for institutional investors, scheduled for Tuesday, October 15th. This event is part of an ongoing series aimed at keeping the investment community informed about recent developments and management's strategic focus. The update will be held via live public webcast from 7:30 a.m. to 8:30 a.m. CT (8:30 a.m. to 9:30 a.m. ET).

Key participants in the update will include Co-Chairman and CEO Walt Bettinger, President Rick Wurster, CFO Mike Verdeschi, and Managing Director Peter Crawford. Interested parties can access the webcast at https://schwabevents.com/.

Schwab Advisor Services™ is set to host its 34th annual IMPACT® conference in San Francisco, the largest gathering of registered investment advisors (RIAs) in the nation. The event, scheduled for November 19-21, 2024, will feature keynote presentations, education sessions, and headline speakers, focusing on practice management, leadership, investment strategies, and client experience.

Attendees will hear from industry experts, including New York Times Bestselling Author Daniel Pink, AI experts Ethan Mollick and Allie K. Miller, and Schwab's senior leadership team. The conference will also include 80 higher education students and professors, participating in a Student Union space on the show floor. Jon Beatty, head of Schwab Advisor Services, emphasized the event's role in showcasing the power and promise of the RIA industry.