The Charles Schwab Corporation

SCHW
Financial Services
$90.15
1.20%Fair Value

The Charles Schwab Corporation (SCHW) is a Financial Services company that currently yields 1.20% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $58.82 and the overvaluation threshold at $137.67. The Charles Schwab Corporation holds a quality score of 70/100 (Good), reflecting 14 consecutive years of dividend growth with a 22% payout ratio. The 5-year dividend CAGR stands at 8.4%.

SCHW Dividend Yield History — Weiss Valuation

Underval. $58.82Overval. $137.67

Distance to undervalued

Waiting for a better entry

Needs about 34.7% downside to reach the Weiss buy zone

Undervaluation starts near $58.82, where the annual dividend would imply roughly 1.84% yield. That is 0.64% above today's yield.

Buy-zone price

$58.82

Target yield

1.84%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

22%

Earnings coverage leaves room for noise.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

8.4%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

The Charles Schwab Corporation is trading at a fair valuation relative to its dividend history.

Current yield 1.2% vs historical max 2.1% (57% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 22%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 70/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

SCHW Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$130

Year 10 Income

$316

Yield on Cost

3.24%

Total Income

$2,090

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

SCHW Dividend Quality Score

Quality Score

70/ 100

Good

Payout Ratio25/25
Dividend Streak20/25
Growth (CAGR 5Y)20/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$90.15
Annual Dividend$1.08
Current Yield1.20%
Yield — Max (10Y)2.10%
Yield — Min (10Y)0.81%
Undervalued Below$58.82
Overvalued Above$137.67
Payout Ratio22.47%
CAGR Dividend 5Y8.4%
CAGR Dividend 10Y16.2%
Years No Cut14y

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14
consecutive years of dividend growth