The bank increased its dividend by 11% following strong capital ratios in the Federal Reserve’s annual stress test.
Goldman Sachs raised its quarterly dividend to $5.00 per share, an 11% increase from $4.50, after passing the Federal Reserve’s annual stress test. The move marks the 15th consecutive year of dividend hikes for the bank.
The stress test results showed Goldman Sachs exceeding the median common equity tier 1 capital ratio among 32 banks in a severely adverse scenario. The bank’s stock has risen 16.5% year-to-date amid a rebound in investment banking fees.
CEO David Solomon stated the increase reflects the bank’s strong earnings, capital position, and confidence in delivering long-term shareholder returns.