Charles Schwab (SCHW)
Charles Schwab is a financial giant that helps millions of people manage their savings, investments, and retirement accounts through its massive brokerage platform.
Is Charles Schwab a good stock for a UK beginner?
The honest version: Charles Schwab is a financial giant that helps millions of people manage their savings, investments, and retirement accounts through its massive brokerage platform.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Successful integration of new technology and expansion into wealth management services.
A prolonged economic downturn leads to significantly lower trading activity.
What does Charles Schwab do?
Think of Charles Schwab as a digital supermarket for money, where customers can trade stocks, hold cash in savings accounts, and access professional financial advice. Trading fees, interest on the cash sitting in customer accounts, and charges for running investment funds together generate the income. The big driver here is where interest rates go, since they directly affect how much profit they earn on the cash customers keep with them.
On our factor screen it looks strongest on quality and growth, and weakest on value.
- ✓Pays a dividend - about 1.2% a year
- ✓Growing - revenue up about 21% over the year
- ✓Very profitable - turns about 39% of sales into profit
- ✓Strong return on shareholder money (ROE 20%)
- Quality screens high (76/100)
- Growth screens high (74/100)
- Strong brand recognition in the financial services sector
- High profit margins compared to many other businesses
- Large and loyal customer base
- Regulatory changes affecting how financial firms operate
- Economic recessions reducing the amount people have to invest
- Cybersecurity threats to digital platforms
What do Charles Schwab's numbers mean?
How much money does Charles Schwab make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Charles Schwab pay a dividend?
Yes - Charles Schwab currently pays a dividend of about 1.2% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Charles Schwab report earnings, and how did recent quarters go?
Charles Schwab is next scheduled to report on about 2026-10-15 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-21 | $1.55 | $1.62 | Beat +5% |
| 2026-04-16 | $1.40 | $1.43 | Beat +2% |
| 2026-01-21 | $1.39 | $1.39 | In line |
| 2025-10-16 | $1.25 | $1.31 | Beat +5% |
| 2025-07-18 | $1.10 | $1.14 | Beat +4% |
| 2025-04-17 | $1.01 | $1.04 | Beat +3% |
Across the last 6 quarters here, Charles Schwab came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Financial Services
What are the scenarios for Charles Schwab?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Charles Schwab?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Strong brand recognition in the financial services sector
- High profit margins compared to many other businesses
- Large and loyal customer base
- Significant scale provides a competitive advantage
- Highly sensitive to changes in interest rates
- Faces intense competition from low-cost digital brokers
- Revenue can be unpredictable depending on market mood
- Regulatory changes affecting how financial firms operate
- Economic recessions reducing the amount people have to invest
- Cybersecurity threats to digital platforms
- Potential for lower interest income if central banks cut rates
The write-up's own warning lights — if these start happening, the case above changes.
- A permanent shift in central bank policy that keeps interest rates near zero
- A major loss of customer trust due to a security breach or service failure
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.