The Charles Schwab Corporation is a financial holding company
engaged, through its subsidiaries, in securities brokerage and
related financial services. Charles Schwab & Co., Inc. (Schwab)
is a securities broker-dealer with branch offices in 48 states,
as well as branches in the Commonwealth of Puerto Rico and the
U.S. Virgin Islands. U.S. Trust Corporation (USTC, and with its
subsidiaries collectively referred to as U.S. Trust) is an
investment management firm that through its subsidiaries also
provides fiduciary services and private banking services. Other
subsidiaries include Charles Schwab Europe (CSE), a retail
securities brokerage firm located in the United Kingdom, Charles
Schwab Investment Management, Inc., the investment advisor for
Schwab's proprietary mutual funds, Schwab Capital Markets L.P.
(SCM), a market maker in Nasdaq and other securities providing
trade execution services to broker-dealers and institutional
clients, and CyBerCorp Holdings, Inc. (formerly known as
CyBerCorp, Inc.), an electronic trading technology and brokerage
firm providing Internet-based services to highly active, online
The Charles Schwab Corporation, through Charles Schwab & Co., Inc.
(Schwab), U.S. Trust Corporation, CyberTrader, Inc. and its
other subsidiaries, provides securities brokerage and related
financial services for 7.8 million active client accounts with
$768 billion in assets. During the second quarter, a total of
$18 billion net new client assets were added and 184,000 new
client accounts were opened.
(Source: Charles Schwab)
Reasons To Invest
The major securities brokerage companies have been under
pressure for most of the last year as trading volume dried up.
Charles Schwab is taking steps to become leaner and meaner in
an increasingly competitive market and in attempt to boost
The company is making progress into the higher margin
businesses of investment advisory and diversified financial
services. Schwab is targeting the high net worth client
and is adding corporate services as well.
In addition, the company has been divesting non performing
divisions. Its most recent sale of Schwab Canada to
Scotiabank recently closed.
The transformation that Schwab has recently went through
will lead to a greater focus on asset accumulation and
generating greater profits from assets already in house.
Recent cost reductions and price rises will lend to better
margins this year and next.
Shares to Qualify = 1 Accept Foreign Accounts: Yes
Auto-reinvestment = Yes Temper Enrollment Serv: Yes
Min/Max Investment = $10 to $5,000/month
Reinvestment Fees -
Div : 0
Wells Fargo Bank
Industry Group: Broker/Dealer 52-week high=$23.18
Annual Dividend Per Share= 0.04 52-week low =$ 8.13
Last earnings 01/18 est = 0.08 actual = 0.08
Next earnings 04-20 est = 0.10 versus = 0.08
P/E = 109
Strong Buy = 2
Moderate Buy = 4
Hold = 14
Moderate Sell = 1
Strong Sell = 0