Covered, compounding — but income-light. A 1.41% yield on a 21.9% trailing payout is very well covered and still compounding: $0.32 a quarter, raised in February 2026 by 18.5% from $0.27. The income is modest for a House card, but the low payout leaves most earnings retained for further raises, and the dividend is earned from brokerage and banking earnings, not a special.
Key risk: Market-sensitive revenue — Schwab's earnings move with trading activity, client cash and interest rates, so a prolonged market or rate downturn would slow the raises even at a 21.9% payout.
Changes if: The trailing payout pushes well past 21.9%, or the dividend stops growing after the February 2026 raise. Growth, not current yield, is what this card has to deliver.
- ✓Payout-coverage check: 21.9% trailing — the $1.28 indicated dividend costs less than a quarter of trailing earnings, leaving most earnings retained.
- !Yield check: 1.41% indicated — $0.32/qtr × 4 at the $90.58 close on Oct. 23, 2026. Real, earned yield, but modest income for a single stock — this card is bought for growth in the payout, not for today's yield.
- ✓Dividend growth check: Raised in February 2026 by 18.5%, from $0.27 to $0.32 a quarter, payable Nov. 27, 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.