Charles Schwab Declares 6.100% Dividend on New Series L Preferred Stock
The Charles Schwab Corporation has declared a 6.100% fixed-rate quarterly dividend on its newly issued Series L Preferred Stock, with the first payment scheduled for September 1, 2026.
The Charles Schwab Corporation (NYSE: SCHW), a financial services firm, has declared a quarterly cash dividend on its newly issued Series L Preferred Stock. The depositary shares, which represent a 1/100th interest in each share of preferred stock, will pay dividends at an initial fixed rate of 6.100%. Read more dividend announcements.
The dividend will be paid quarterly in arrears on the first day of March, June, September, and December each year. The initial dividend payment is scheduled for September 1, 2026, based on a liquidation preference of $100,000 per share of preferred stock, equivalent to $1,000 per depositary share.
Rate Reset Structure
The dividend rate remains fixed at 6.100% through June 1, 2031. Beginning on that date, and every five years thereafter, the rate will reset to the five-year Treasury rate plus 2.250%.
The Corporation sold 1.5 million depositary shares, raising approximately $1.49 billion in net proceeds after underwriting discounts. The preferred stock is perpetual with no stated maturity date.
Redemption Terms
Schwab may redeem the Series L Preferred Stock, in whole or in part, on any dividend payment date on or after June 1, 2031. The company may also redeem the shares in full within 90 days following a regulatory capital treatment event. Any redemption would occur at $100,000 per share, plus any declared and unpaid dividends.
The preferred stock dividends are non-cumulative, meaning any undeclared dividends do not accumulate or accrue interest.
| Dividend Details | Information |
|---|---|
| Security | Series L Preferred Stock (Depositary Shares) |
| Initial Dividend Rate | 6.100% |
| Liquidation Preference | $1,000 per depositary share |
| First Payment Date | September 1, 2026 |
| Payment Frequency | Quarterly |
| Payment Dates | March 1, June 1, September 1, December 1 |
| First Reset Date | June 1, 2031 |
| Reset Rate | Five-year Treasury rate + 2.250% |
Offering Details
The offering was underwritten by a syndicate led by Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC. The depositary shares settled on April 22, 2026, at a public offering price of $1,000 per share with an underwriting discount of $10.00 per share.
The Series L Preferred Stock ranks junior to all of Schwab's debt obligations and senior stock, if any, but senior to common stock with respect to dividend payments and distribution of assets upon liquidation.