The Charles Schwab Corporation (NYSE:SCHW) is included among the 10 Best Dividend Stocks to Buy in August.

Charles Schwab’s (SCHW) Financial Strength Makes It a Dividend Buy in August

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The Charles Schwab Corporation (NYSE:SCHW), an American multinational financial services company, is bouncing back from a challenging period with solid momentum, as its core fundamentals strengthen across the board. The company has resolved the issue of cash sorting, where clients were shifting idle funds into higher-yield options, which had put pressure on its funding base. With that behind it, Schwab has begun reducing high-cost debt. This change has pushed its net interest margins closer to 3%, boosting net interest income and uncovering strong underlying earnings potential. As conditions normalize, the company is now on track to achieve over 20% annual earnings per share growth, marking a strong turnaround from previous quarters.

The Charles Schwab Corporation (NYSE:SCHW) recently announced earnings for the second quarter of 2025. The company reported revenue of $5.85 billion, which showed an impressive growth of 24.75% from the same period last year. It posted core net new assets totaling $80.3 billion, reflecting a 31% increase compared to the same period last year. The company also saw strong client activity, adding over one million new accounts during the quarter. As a result, total client assets climbed to a record high of $10.76 trillion.

On July 24, The Charles Schwab Corporation (NYSE:SCHW) declared a quarterly dividend of $0.27 per share, which was in line with its previous dividend. In addition, the Board has approved a new share repurchase program, allowing the company to repurchase up to $20 billion of its common stock. SCHW is among the best dividend stocks as the company has paid regular dividends to shareholders since 1990. As of July 28, the stock has a dividend yield of 1.10%.

While we acknowledge the potential of SCHW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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