Charles Schwab’s (SCHW) Financial Strength Makes It a Dividend Buy in August
The Charles Schwab Corporation (NYSE:SCHW) is included among the 10 Best Dividend Stocks to Buy in August.
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The Charles Schwab Corporation (NYSE:SCHW), an American multinational financial services company, is bouncing back from a challenging period with solid momentum, as its core fundamentals strengthen across the board. The company has resolved the issue of cash sorting, where clients were shifting idle funds into higher-yield options, which had put pressure on its funding base. With that behind it, Schwab has begun reducing high-cost debt. This change has pushed its net interest margins closer to 3%, boosting net interest income and uncovering strong underlying earnings potential. As conditions normalize, the company is now on track to achieve over 20% annual earnings per share growth, marking a strong turnaround from previous quarters.
The Charles Schwab Corporation (NYSE:SCHW) recently announced earnings for the second quarter of 2025. The company reported revenue of $5.85 billion, which showed an impressive growth of 24.75% from the same period last year. It posted core net new assets totaling $80.3 billion, reflecting a 31% increase compared to the same period last year. The company also saw strong client activity, adding over one million new accounts during the quarter. As a result, total client assets climbed to a record high of $10.76 trillion.
On July 24, The Charles Schwab Corporation (NYSE:SCHW) declared a quarterly dividend of $0.27 per share, which was in line with its previous dividend. In addition, the Board has approved a new share repurchase program, allowing the company to repurchase up to $20 billion of its common stock. SCHW is among the best dividend stocks as the company has paid regular dividends to shareholders since 1990. As of July 28, the stock has a dividend yield of 1.10%.
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