Schwab issues $1.5B preferred stock with dividend restrictions on common shares

Filed April 22, 2026 · Period ending April 20, 2026 · ~1 min read

Key Changes

• high

  Schwab sold 1.5M depositary shares of new 6.100% Series L Preferred Stock through major underwriters, raising capital that ranks senior to common stock for dividends and liquidation.

  Item 8.01 verify on EDGAR →
• high

  If Schwab fails to pay preferred dividends, the company cannot pay common dividends, buy back shares, or make distributions on junior securities until preferred holders are paid—creating a payment hierarchy that could restrict capital returns during stress.

  Item 5.03 verify on EDGAR →
• medium

  The Series L Preferred is perpetual and non-cumulative (missed dividends don't accumulate), with a 6.100% fixed rate that will reset at a future date, providing permanent Tier 1 capital.

  Exhibit 3.1 verify on EDGAR →