Schwab dividend
Schwab's forecast base dividend reaches $1.36 per share in 2027 and $1.52 in 2029; today, its dividend yield is 1.4% at a $94.16 share price. Its cash coverage has been uneven: free cash flow was $1,202 million in 2021 against dividends of $1,366 million, while in 2022 dividends and buybacks reached $4,986 million against free cash flow of $1,086 million.
How much does Schwab pay in dividends?
Dividends rise gradually in the base case because earnings and funding conditions improve, but the forecast does not repeat the latest increase. The base dividend reaches $1.36 per share in 2027 and $1.52 in 2029. The bear case holds at $1.28, consistent with a pause during stress. The bull case reaches $1.80, requiring stronger earnings and adequate bank capital.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 4.65 | 2.99 | 2.54 | 3.50 | 2.83 |
| − Dividends paid, per share | 1.08 | 1.00 | 1.00 | 0.84 | 0.72 |
| − Share buybacks, per share | 4.06 | 0.00 | 1.55 | 1.79 | 0.00 |
What this means. In 2025, Schwab paid shareholders 30 cents more per share than its business generated in cash, so it had to use other cash or borrow.
Does Schwab's cash cover its dividend?
Free cash flow was $1,202 million in 2021 against dividends of $1,366 million. In 2022, dividends and buybacks reached $4,986 million against free cash flow of $1,086 million. But financial-institution cash flow is not a steady earnings pot: client deposits move, securities mature, and funding needs change. A large inflow may therefore be needed for withdrawals or debt repayment rather than dividends.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 8,763 | 2,050 | 18,887 | 1,086 | 1,202 |
| − Dividends paid | 1,958 | 1,838 | 1,838 | 1,591 | 1,366 |
| − Share buybacks | 7,346 | 0 | 2,842 | 3,395 | 0 |
| = Free cash flow not paid out | 212 | 14,207 | |||
| = Paid out more than the free cash flow | 541 | 3,900 | 164 |
What this means. In 2025, the company paid shareholders more cash than it made from the business, so it used savings or borrowed money to cover the difference.
What could change Schwab's dividend?
Persistent cash sorting during 2027–2029 would move the forecast toward bear by weakening deposits, net interest margin, earnings, and buybacks. Market weakness or slower asset gathering would pressure fee revenue and the multiple. An expense miss would undermine the 800-basis-point operating-leverage promise.
What is Schwab's dividend yield today?
The tables show a sharp earnings turn: revenue fell 9.3% in 2023, then grew 22.0% in 2025. Diluted EPS rose from $2.54 in 2023 to $4.65 in 2025. Trailing P/E is 16.1x; forward P/E is 11.7x. Dividend yield is 1.4%; buyback yield is 4.5%. Shareholder returns compete with investment and balance-sheet demands. The company’s own free cash flow was 3.5% of revenue in 2022 and 98.6% in 2023, when a large regulatory-investment release inflated operating cash. Buybacks were $7,346 million in 2025; average diluted shares fell 1.4%.
Charles Schwab Corporation is a financial-services company that combines brokerage, managed investing, banking, and services for independent advisers. At $94.16 a share on October 16, 2026, its stock looks inexpensive only if recent earnings and a demanding forecast can hold.
| Today (Oct 16, 2026) | |
|---|---|
| Share price | 94.16 |
| Free cash flow yield (calculated) | 5.4% |
| Dividend yield (calculated) | 1.4% |
What this means. The next twelve months price-to-earnings ratio uses analysts’ expected profit, so it is only an estimate and may be wrong.