CONTENT

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• English (en)

• Title

• PREFERREDS-FOOTER-DISCLOSURE

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• -

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• Current yield is used to assess a security's income relative to its current market value and should not be used as an indicator of expected total return. Current yields do not take into account the total return over the life of the security, reinvestment risks, and price appreciation or depreciation, which may adversely affect a security's performance. Also, preferred securities with a positive current yield may produce a negative total return. Measures such as yield-to-maturity (YTM), yield-to-call (YTC) and yield-to-worst (YTW) are better indicators of expected total return and should be considered prior to transacting on a preferred security. Yield-to-maturity (YTM) calculates the annual rate of return assuming a security is held to maturity. Yield-to-call (YTC) calculates the annual rate of return assuming a security is redeemed on the first or next call date. Yield-to-worst (YTW) provides the lowest potential rate of return for a security, and is generally the lower of the yield-to-maturity or yield-to-call for every possible call date. For more information or to obtain the yield-to-maturity, yield-to-call and/or yield-to-worst, contact a Schwab specialist at 877-765-7147.

  Preferred securities are often callable, meaning the issuing company may redeem the security at a certain price after a certain date. Such call features may affect yield. Please see above and call a Schwab specialist at 877-765-7147 for additional information before investing in preferred securities.

  Preferred securities generally have lower credit ratings and a lower claim to assets than the issuer's individual bonds. Like bonds, prices of preferred securities tend to move inversely with interest rates, so they are subject to increased loss of principal during periods of rising interest rates. Investment value will fluctuate, and preferred securities, when sold before maturity, may be worth more or less than original cost. Preferred securities are subject to various other risks including changes in interest rates and credit quality, default risks, market valuations, liquidity, prepayments, early redemption, deferral risk, corporate events, tax ramifications, and other factors. Dividend or interest payments on preferred securities may be variable, suspended or deferred by the issuer at any time, and missed or deferred payments may not be paid at a future date. Investors may incur a tax liability on the deferred income. Consult your tax advisor regarding your specific circumstances. Certain preferred securities are convertible into common stock of the issuer; therefore, their market prices can be sensitive to changes in the value of the issuer's common stock. Some preferred securities are perpetual, meaning they have no stated maturity date. In the case of preferred securities with a stated maturity date, the issuer may, under certain circumstances, extend this date at its discretion. Extension of maturity date would delay repayment of principal on the securities. Prior to investing, investors should carefully consider information on the terms and conditions of the security located in the prospectus, including specific, risks and features, which can be located on the SEC's EDGAR system.

  Quotes on Canadian securities are provided by the Toronto Stock Exchange. Trade executions are through third parties who may execute trades on a principal basis and may include additional fees, a mark-up or mark-down as appropriate. Investing in these securities involves additional risks related to currency exchange calculations and fluctuations, economic and political differences and differences in accounting standards.

  Dividends shown on this page are historical. Please note that some derivative statistics such as annual dividend rate and annual dividend yield can take into account future dividends which are estimated and could be subject to change. There can be no guarantee of future dividends nor that dividends will increase over time.

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