Charles Schwab authorizes $20 billion share repurchase program

WESTLAKE, Texas - Charles Schwab Corporation (NYSE:SCHW), currently trading near its 52-week high of $97.50 with a market capitalization of $175.5 billion, announced Thursday its board of directors has authorized a new $20 billion share repurchase program, replacing the previous authorization that had approximately $6.9 billion remaining as of June 30, 2025. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value calculations.

The financial services company also declared a regular quarterly cash dividend of $0.27 per common share, payable August 22 to stockholders of record as of August 8. Notably, InvestingPro data shows Schwab has maintained dividend payments for 37 consecutive years, with an 8% dividend growth over the last twelve months.

"The Board’s decision regarding the Share Repurchase Program reflects Schwab’s sustained business and financial momentum as well as our continued confidence in the long-term prospects for the firm," said Co-Chairman Walt Bettinger in the press release statement.

The company reported having 1.822 billion weighted-average common and common equivalent shares outstanding for the quarter ended June 30. Shares may be repurchased through open market or privately negotiated transactions based on prevailing market conditions.

Additionally, the board declared dividends on several series of outstanding preferred stock, all payable September 2 to stockholders of record as of August 18.

CFO Mike Verdeschi stated that the company’s "strong balance sheet, diversified financial model, and robust capital levels" position it well to support client growth while returning excess capital to stockholders.

Charles Schwab currently manages $10.76 trillion in client assets and serves 37.5 million active brokerage accounts, 5.6 million workplace plan participant accounts, and 2.1 million banking accounts, according to information provided in the company announcement. The company has demonstrated strong performance with a 31.24% year-to-date return and maintains a "GOOD" financial health score according to InvestingPro, which offers comprehensive analysis and 10+ additional ProTips for this prominent player in the Capital Markets industry.

In other recent news, Charles Schwab reported second-quarter 2025 earnings with adjusted earnings per share of $1.14, surpassing estimates from analysts such as KBW and JMP, who had projected $1.09 and $1.12, respectively. Following these results, several firms have raised their price targets for Charles Schwab. Keefe, Bruyette & Woods increased their target to $108 while maintaining an Outperform rating, and JMP raised theirs to $110, also maintaining a Market Outperform rating. Citi also adjusted its price target to $110, citing strong quarterly performance and maintaining a Buy rating. Raymond James increased its target to $103, noting potential net interest margin upside as Schwab Bank’s high-cost funding is expected to be reduced by the end of 2025.

In addition to the earnings news, Charles Schwab has expanded its 24-hour trading capabilities. This expansion allows retail clients to trade over 1,100 securities around the clock through its thinkorswim platform. The newly included securities primarily consist of popular exchange-traded funds, enhancing the company’s extended trading offerings. This move follows Schwab’s earlier expansion to include S&P 500 and Nasdaq-100 stocks in its overnight trading options.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.