The Company in a Nutshell
| Date Reviewed | 01/22/2026 |
| Company Name | Charles Schwab Corp |
| Symbol | SCHW |
| Sector | Financials |
| Industry | Capital Markets |
| Beta | 0.89 |
| PRO Rating | 3 |
| Dividend Safety | 2 |
Business Model
The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services, and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers. Its products and services include brokerage, mutual funds, exchange-traded funds (ETFs), managed investing solutions, alternative investments, banking, and trust.
| Current price | 92.33 |
| ROE | 20.55 % |
| ROIC | 0.00 % |
| Shareholder Yield | 1.45 % |
| 5-Yr Total Return | 51.00 % |
| 1-Yr Total Return | 22.50 % |
| Next Earnings Date | 04-15-26 |
Latest Quarter Information
What the CEO said:
Schwab delivered growth on all fronts in 2025. Total client accounts grew 6% year-over-year to 46.5 million. New and existing clients entrusted us with $519 billion in core net new assets – a 5.1% organic growth rate – bringing total client assets to a record $11.90 trillion. Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading, and banking. Net inflows into our Managed Investing solutions grew by 36% versus 2024, while bank loan originations achieved another record year.
What we say:
2026-01-22, SCHW gave robust results for 4Q'25. The revenue mix was led by net interest revenue of $3.172B (+25% YoY), asset management and administration fees of $1.733B (+15%), and trading revenue of $1.066B (+22%); these were partly offset by bank deposit account fees of $238M (down slightly) and other revenue of $127M. Adjusted pre-tax margin was 52.2% up from 46.6%, and NIM expanded to 2.90% in Q4 (up 57 bps YoY). Q4 total client assets grew 18% YoY to $11.9T and the daily average trading volume was up 31% to 8.3M. SCHW repurchased 29.2M shares for $2.7B in Q4 and reported $7.3B for the full year 2025. The pending Forge acquisition is targeted to close in the first half of 2026.
Investment Thesis
Dividend Triangle
| 5-Yr Rev. Growth | 14.30 % |
| 5-Yr EPS Growth | 15.70 % |
| 5-Yr Div Growth | 9.45 % |
Potential Risks
| Debt/Equity | 5.80 |
| Financial Debt to EBITDA (TTM) | 22.35 |
| Current Ratio (Quarterly) | 0.00 |
| Credit Score | 55 |
Dividend Growth Perspective
| Dividend ($) | 1.28 |
| Dividend Yield Fwd | 1.35 % |
| Dividend Frequency | Quarterly |
| Average 5-Yr Yield | 1.25 % |
| Payout Ratio (%) | 23.25 |
| Cash Payout Ratio (%) | 17.55 |
| DGR 1-Yr (TTM) | 8.65 |
| DGR 3-Yr (TTM) | 6.35 |
| DGR 5-Yr (TTM) | 9.45 |
| DGR Streak | |
| Chowder Score | 10.80 |
| Next DVD PMT | 02-27-26 |
Valuation
(Data for `ddm_growth_rate_years` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 162 B |
| PE Ratio | 19.75 |
| Fwd PE | 15.10 |
| Price to Book Ratio | 3.30 |
| DDM Valuation | 0 |
| Average 5-Yr PE | 25.4 |
| Value Score | 38 |