The Goldman Sachs Group, Inc. (NYSE:GS) Announces Dividend Increase - $5.00 Per Share

Key Points

• Goldman Sachs raised its quarterly dividend to $5.00 per share from $4.50, an 11.1% increase. Shareholders of record on September 1 will be paid on September 29.
• The new dividend implies an annualized payout of $18.00 per share and a 1.8% yield. The company’s payout ratio remains manageable at 35.9%, suggesting the dividend is well covered by earnings.
• Goldman also posted strong quarterly results, with earnings of $20.98 per share and revenue of $20.34 billion, both above analyst expectations. Revenue rose 39.4% year over year, and analysts currently rate the stock Hold on average.

The Goldman Sachs Group, Inc. (NYSE:GS - Get Free Report) declared a quarterly dividend on Monday, July 13th. Stockholders of record on Tuesday, September 1st will be paid a dividend of 5.00 per share by the investment management company on Tuesday, September 29th. This represents a c) annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Tuesday, September 1st. This is a 11.1% increase from The Goldman Sachs Group's previous quarterly dividend of $4.50.

The Goldman Sachs Group has raised its dividend by an average of 0.2%per year over the last three years and has raised its dividend every year for the last 13 years. The Goldman Sachs Group has a payout ratio of 35.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect The Goldman Sachs Group to earn $67.34 per share next year, which means the company should continue to be able to cover its $18.00 annual dividend with an expected future payout ratio of 26.7%.

The Goldman Sachs Group Price Performance

NYSE GS opened at $1,142.58 on Wednesday. The company has a market capitalization of $337.07 billion, a PE ratio of 20.88, a price-to-earnings-growth ratio of 1.34 and a beta of 1.30. The company has a debt-to-equity ratio of 2.89, a quick ratio of 0.63 and a current ratio of 0.63. The business's fifty day moving average is $1,024.94 and its 200 day moving average is $941.58. The Goldman Sachs Group has a fifty-two week low of $691.30 and a fifty-two week high of $1,143.84.

The Goldman Sachs Group (NYSE:GS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 14th. The investment management company reported $20.98 earnings per share for the quarter, topping analysts' consensus estimates of $14.47 by $6.51. The business had revenue of $20.34 billion during the quarter, compared to analyst estimates of $16.22 billion. The Goldman Sachs Group had a net margin of 14.13% and a return on equity of 16.53%. The company's revenue was up 39.4% on a year-over-year basis. During the same period in the prior year, the business posted $10.91 earnings per share. Sell-side analysts predict that The Goldman Sachs Group will post 60.44 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on GS shares. Dbs Bank upped their target price on shares of The Goldman Sachs Group from $890.00 to $1,050.00 in a report on Thursday, May 7th. JPMorgan Chase & Co. boosted their price objective on The Goldman Sachs Group from $826.00 to $900.00 and gave the company a "neutral" rating in a research report on Friday, June 12th. Morgan Stanley upped their price objective on The Goldman Sachs Group from $1,021.00 to $1,099.00 and gave the stock an "equal weight" rating in a research note on Monday, June 29th. Evercore reiterated an "outperform" rating on shares of The Goldman Sachs Group in a research report on Monday, July 6th. Finally, BMO Capital Markets boosted their price target on The Goldman Sachs Group from $972.00 to $1,070.00 and gave the stock a "market perform" rating in a report on Monday, June 29th. Ten analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $1,005.33.

About The Goldman Sachs Group

The Goldman Sachs Group, Inc is a global investment banking and financial services firm headquartered in New York City. Founded in 1869 as a commercial paper business, the company has grown into a diversified financial institution that provides a broad range of services to corporations, financial institutions, governments and individuals. The firm is led by Chief Executive Officer David M. Solomon and operates across major financial centers worldwide.

Goldman Sachs' core businesses include investment banking, global markets, asset and wealth management, and consumer banking.

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