Goldman Sachs Raises Quarterly Dividend 11.1% to $5.00

Goldman Sachs raised its quarterly common dividend 11.1% to $5.00 from $4.50. The shares traded ex-dividend on September 1, 2026, and the new rate lifts the annual dividend to $20.00 per share.

Why the dividend changed

The increase followed the Federal Reserve’s annual capital review and a determination that Goldman remained well capitalized under stressed economic conditions. The firm said the higher payment continued its strategy of providing shareholders with a sustainable, growing dividend. Chairman and Chief Executive David Solomon cited the “strength of our franchise, our earnings power” and the firm’s capacity to support clients while investing for long-term growth. Goldman’s CCAR statement framed the decision as a product of both earnings and capital strength.

The board subsequently approved the increase, according to Goldman’s second-quarter Form 10-Q. The regulatory backdrop matters because bank dividends depend not only on profits but also on capital requirements and the amount of loss-absorbing equity retained after distributions.

Operating results supplied additional support. Goldman reported second-quarter net revenue of $20.34 billion, net earnings of $6.63 billion, diluted earnings per share of $20.98 and annualized return on average common equity of 23.5%. Solomon said activity had accelerated across the firm and pointed to transaction pipelines in Global Banking & Markets and Asset & Wealth Management. The quarterly release described the period as a record quarter for the franchise.

Goldman’s broader strategy also favors more durable and capital-efficient revenue. Its annual report emphasizes financing, asset management fees, private banking and lending, while reducing historical principal investments. That mix is intended to make earnings less dependent on any single trading or dealmaking cycle, although market activity and asset values remain important drivers. Goldman’s 2025 annual report also identifies wealth management, alternatives and investment solutions as growth priorities.

Dividend track record

The latest increase extends Goldman’s dividend-growth streak to 14 consecutive years. The five-year annualized dividend-growth rate is 22.9%, reflecting a pattern of sizable step-ups rather than token annual increases.

Full-year distributions rose from $5.00 per share in 2020 to $6.50 in 2021, $9.00 in 2022, $10.50 in 2023, $11.50 in 2024 and $14.00 in 2025. The annual increase was 9.5% in 2024 and accelerated to 21.7% in 2025.

Recent quarterly payments show the same progression. The rate was $3.00 for the ex-dividend dates of December 2, 2024, February 28, 2025 and May 30, 2025. It then moved to $4.00, followed by $4.50 for the March 2, 2026 and June 1, 2026 ex-dividend dates, before reaching $5.00 on September 1, 2026. The sequence shows that Goldman has raised the dividend more than once within some annual periods.

Is the dividend covered?

The dividend consumes 26% of earnings. That ratio leaves most reported earnings available for reinvestment, share repurchases, balance-sheet growth and additional capital retention. For a regulated bank, the earnings payout ratio is only part of the coverage assessment because capital rules can constrain distributions even when accounting profits are adequate.

SmarterDividends rates the dividend A, with a safety score of 89. That places Goldman in the very safe range of 80-100. The grade reflects the low earnings payout and established growth record, while recognizing that investment-banking, trading and asset-management earnings remain sensitive to capital markets and economic conditions.

Yield and valuation

Goldman’s forward dividend yield is 2.14%, below the Financial Services sector median forward yield of 5.70%. The comparison indicates that the shares provide less current dividend income than the sector midpoint, despite the company’s rapid recent dividend growth.

The shares are priced at $921.46, and Goldman has a market value of $268.3 billion. The one-year price return is 19.3%, which has limited the yield available at the current price. SmarterDividends estimates fair value at $1,158.63 and classifies the shares as undervalued, with 23% upside to that estimate.

What to watch

The next quarterly results will provide the clearest update on earnings coverage, regulatory capital and management’s capital-allocation priorities. Investors can also track whether activity in mergers, underwriting, equities and fixed-income financing continues to support the operating momentum described in the second-quarter release.

Other relevant items include Goldman’s expansion in Asset & Wealth Management, execution of the planned Apple Card portfolio transition and progress in building more recurring fee revenue. The next board declaration will establish the coming ex-dividend and payment schedule. Any change in stress-capital requirements, earnings volatility or the balance between dividends and repurchases would affect the capacity for subsequent increases.