Charles Schwab Corporation Reports Earnings, Increases Dividend
New York, NY — In today’s economy, brokerage and banking companies aren’t really the fastest growing. This one company, however, just reported record net income.
On Monday, the Charles Schwab Corp (NYSE:SCHW) announced financial results for the second quarter of 2016. The company generated $1.83 billion in net revenue, up 17% year-over-year. Net income came in at $452 million, representing a 28% improvement year-over-year and a 10% increase sequentially. Net income translated to earnings of $0.30 per share. (Source: “Schwab Reports Record Quarterly Net Income of $452 Million, Up 28%,” The Charles Schwab Corporation, July 18, 2016.)
These numbers met Wall Street’s expectations. On average, analysts were anticipating $0.30 of earnings per share on revenue of $1.8 billion.
“Our second quarter results mark yet another period of standout financial performance for Schwab,” said Walt Bettinger, chief executive officer at Schwab. “Our 17% year-over-year revenue growth and 28% increase in earnings reflect the power of our successful ‘through clients’ eyes’ strategy and disciplined financial management, particularly in the face of an unsettled economic environment and interest rates that remain near historic lows.” (Source: Ibid.)
Along with the earnings release, the company also declared a new quarterly dividend of $0.07 per share. This represented a 17% increase from Schwab’s current payout. After the increase, the company has an annual dividend yield of 1.04%.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.