🟢 On April 2, 2025, Citigroup upgraded Charles Schwab ($SCHW) from ‘Neutral’ to ‘Buy’ and raised the price target to $102. This bullish shift stems from Schwab’s solid post-Ameritrade integration progress and a focused strategy on client asset growth and debt reduction.
🟢 Citi sees renewed momentum in Schwab’s ability to scale its brokerage operations. February’s report showed a 44% year-over-year jump in core net new assets, totaling $48 billion. Total client assets swelled to $10.28 trillion, a 16% gain from the year prior. Notably, Schwab has now clocked 15 consecutive months of adding over 300,000 new brokerage accounts monthly—February alone brought in 362,000.
🟢 Schwab is also aggressively paying down short-term debt, which should free up capital for shareholder returns and growth investments. These financial moves align with Citi’s thesis that Schwab is well-positioned to benefit from increased client engagement and rising interest income amid a more favorable macro backdrop.
🟢 The firm’s operational scale, expanding marketing footprint, and steady client asset inflows give investors a compelling reason to consider $SCHW, especially with a more favorable risk-reward profile entering the second half of 2025.
💸 Dividend Fundamentals
🟢 Schwab’s dividend appeal is amplified by its ETF offerings like the Schwab U.S. Dividend Equity ETF (SCHD), which targets high-quality dividend-paying companies. As of March 31, 2025, SCHD featured a 30-day SEC yield of 3.68% and a distribution yield of 3.49%.
🟢 The firm continues to focus on financial strength and dividend sustainability—key ingredients for long-term income investors. Whether through direct equity or dividend-focused ETFs, Schwab delivers a stable and attractive option for those seeking dependable yield.
With this strategic clarity and income potential, $SCHW is earning its upgrade in more ways than one.