Goldman Sachs has announced a 33% increase in its common stock dividend, from $3.00 to $4.00 per share, effective July 1, 2025, pending approval by the firm’s board of directors. This increase is part of the firm’s plan to provide shareholders with a sustainable and growing dividend.
The Federal Reserve has disclosed that Goldman Sachs' current stress capital buffer (SCB) from the CCAR 2024 test has been reduced by 10 basis points to 6.1%. This results in a current Common Equity Tier 1 (CET1) ratio requirement of 13.6%, effective immediately. Goldman Sachs expects the firm’s SCB requirement to be 3.4%, resulting in a standardized CET1 ratio requirement of 10.9%, effective October 1, 2025.
Goldman Sachs' Chairman and CEO, David Solomon, highlighted that the firm's work over the years has contributed to reducing its capital intensity. He also mentioned the Federal Reserve's intention to institute a more transparent and fair approach to the stress tests, aiming to uphold the safety and soundness of the financial system.
Goldman Sachs, founded in 1869, is a leading global financial institution that provides a wide range of financial services to a diverse client base, including corporations, financial institutions, governments, and individuals. The firm is headquartered in New York and has offices in major financial centers worldwide. As a result of these announcements, the company's shares have moved -0.18% on the market, and are now trading at a price of $706.46. Check out the company's full 8-K submission here.
