Charles Schwab 2010 Annual Report Download - page 50

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THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)
D
ividends
CSC paid common stock cash dividends of $288 million and $279 million in 2010 and 2009, respectively. Since the initial dividend
in 1989, CSC has paid 87 consecutive quarterly dividends and has increased the quarterly dividend rate 19 times, including a 20%
increase in the third quarter of 2008. Since 1989, dividends have increased by a 26% compounded annual growth rate, excluding the
special cash dividend of $1.00 per common share in 2007. CSC paid common stock dividends of $.24, $.24, and $.22 per share in
2010, 2009, and 2008, respectively. While the payment and amount of dividends are at the discretion of the Board of Directors,
subject to certain regulatory and other restrictions, the Company currently targets its cash dividend at approximately 20% to 30% of
net income.
Share Repurchases
There were no repurchases of CSC’s common stock in 2010 or 2009. As of December 31, 2010, CSC had remaining authority from
the Board of Directors to repurchase up to $596 million of its common stock.
B
usiness Acquisition
On November 9, 2010, the Company completed its acquisition of substantially all of the assets of Windward for $106 million in
common stock and $44 million in cash.
Off-Balance-Sheet Arrangements
The Company enters into various off-balance-sheet arrangements in the ordinary course of business, primarily to meet the needs of its
clients. These arrangements include firm commitments to extend credit. Additionally, the Company enters into guarantees and other
similar arrangements as part of transactions in the ordinary course of business. For information on each of these arrangements, see
“Item 8 – Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – 14. Commitments and
Contingent Liabilities.”
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