5 Reliable Dividend Stocks to Buy for Long-Term Investors

3. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 101

Dividend Yield as of June 24: 1.40%

On June 19, The Wall Street Journal reported that The Charles Schwab Corporation (NYSE:SCHW) is expanding into the prediction markets space. According to people familiar with the matter, the brokerage is working with Cboe Global Markets to introduce all-or-nothing options contracts that allow customers to make yes-or-no bets on the performance of the S&P 500.

The contracts differ somewhat from those offered by platforms such as Kalshi and Polymarket, which provide futures contracts rather than options. Even so, these binary options work in a similar way. They either pay a fixed cash settlement or nothing at all, depending on whether the S&P 500 closes above or below a specified target price.

The people said Schwab plans to make the contracts available to customers in the coming months. Schwab is also developing a similar offering that uses a Cboe feature known as “the plus zone.” This feature allows traders to receive a partial payout if their prediction is close, even when the index does not close exactly at the target level.

According to the report, Schwab and Cboe have also discussed introducing contracts tied to other indexes or financial benchmarks. The brokerage, though, intends to focus on events with measurable and verifiable outcomes in financial markets. Contracts linked to events such as World Cup results or next year’s Oscars are not being considered.

The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. Through its subsidiaries, the company provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.