Goldman Sachs Raised Its Dividend as Investment Banking Fees Rebound. Is the Stock a Buy?
Goldman Sachs is in the middle of a red-hot M&A market.
Overview
One of the leading investment banks in the world, Goldman Sachs (NYSE: GS), recently stated its intention to raise its quarterly dividend by 11% to $5.00 per share, up from $4.50 per share.
The dividend raise comes after the bank passed the Federal Reserve's annual stress test with flying colors. Goldman Sachs, like many other large banks, has been in the cycle of raising its dividend in the third quarter, after the annual stress test results come out. This will mark the 15th consecutive year that Goldman Sachs has raised its dividend.
Details
The stress test results, designed to measure a large bank's capital strength in the event of a major recession or economic shock, showed that Goldman Sachs has more than adequate capital to navigate a downturn. Its score came in above the median common equity tier 1 capital ratio among the 32 banks in the severely adverse test scenario the Fed presented.
Source
Originally published at www.fool.com.