10 Best Financial Stocks to Buy According to Billionaires

6. The Charles Schwab Corporation (NYSE:SCHW)

Number of Billionaire Investors: 19

The Charles Schwab Corporation (NYSE:SCHW), one of the best financial stocks, is a Texas-based financial firm specializing in wealth management, banking, and investment services. It offers trading, mutual funds, financial planning, and digital tools for individual investors and advisors.

On February 10, Jefferies remained bullish on The Charles Schwab Corporation (NYSE:SCHW) with a Buy rating and a $95 target. According to Jefferies, Schwab’s $1.5 billion share buyback from TD signals financial strength, with an expected 6.5% Tier 1 Leverage ratio. Trading activity remains strong, and with $7.2 billion left for repurchases, Schwab plans to keep buying back shares.

The Charles Schwab Corporation (NYSE:SCHW) reported a Q4 net income of $1.8 billion, or $2 billion, excluding transaction costs. Total client assets grew 19% year-over-year to $10.1 trillion, fueled by $114.8 billion in new assets during the fourth quarter, a 23% rise in brokerage accounts to 36.5 million, and record $55 billion net inflows into Managed Investing. Revenue climbed 20%, driven by an 11% increase in trading activity and a 14% boost in trading revenue, while net interest margin expanded to 2.33% and sweep cash balances rose by $34.6 billion.

On January 29, Charles Schwab announced an 8% increase in its quarterly dividend, raising it from $0.25 to $0.27 per share, along with a separate announcement for preferred share dividends. Shareholders received the payout on February 28.