5 Best November Dividend Stocks To Buy

2. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Shareholders: 58

November 25 Dividend Payout: $0.22

The Charles Schwab Corporation (NYSE:SCHW)’s dividend is another one that’s growing fast, rising at a CAGR of 20.9% over the last five years. While its yield of 1.1% doesn’t pop off the page, the company’s 22% payout ratio indicates its dividend could be grown at a sustained pace in the years to come.

As with Citizens Financial, growing net interest income was also a big boon for Charles Schwab during Q2, as the company’s revenue rose by 13% year-over-year. The financial services company expects to perform even better in Q3, driving revenue to as much as 19% year-over-year.

The Charles Schwab Corporation (NYSE:SCHW) is an under-the-radar stock that hedge funds love, as it ranked as their 44^th most popular stock at the end of Q1. Ownership of the stock did slip by 11% during Q2, but many of the company’s biggest bulls added to their positions during the quarter, including David Blood and Al Gore’s Generation Investment Management and John Armitage’s Egerton Capital Limited.

The RiverPark Large Growth Fund was impressed with The Charles Schwab Corporation (NYSE:SCHW)’s Q2 performance, as it discussed in its Q3 2022 investor letter:

“SCHW reported solid 2Q business metrics in July, with revenue up 13% year over year, and net income up 42% year over year. Schwab and TD Ameritrade (which Schwab acquired in October 2020) have been the leading share gainers in the discount brokerage industry over the last decade, with both generating substantial organic asset growth while also growing operating margins and remaining amongst the price leaders on all products. With these two businesses now combined, revenue and expense synergies should accelerate in 2023, and we believe the company will be in an even stronger position to gather assets and drive long-term margins and free cash flow in the years to come. Moreover, the combination of steadily rising short-term rates (which should benefit net interest income), plus acquisition synergies from the AMTD deal, gives us confidence that SCHW is poised to generate continued double-digit earnings growth for the foreseeable future.”