Goldman Sachs (GS) plans to raise dividend 10% following stress test

June 30, 2023 5:17 PM EDT

On Wednesday, June 28, the Federal Reserve notified the firm of the Stress Capital Buffer (“SCB”) for The Goldman Sachs Group, Inc. (NYSE: GS) of 5.5%, resulting in a Standardized Common Equity Tier 1 (“CET1”) ratio requirement of 13.0%, which will become effective on October 1, 2023.

The firm’s capital plan includes an increase in the common stock dividend from $2.50 to $2.75 per share beginning July 1, 2023, subject to approval by the firm’s Board of Directors at the customary third quarter meeting. This increase will enable us to pay our shareholders a sustainable, growing dividend and maintain a competitive yield, complemented by the firm’s previously announced $30 billion share repurchase program.

“We continue to execute on our client-centric strategy, which will further strengthen the firm’s franchise and return profile,” said Chairman and CEO David Solomon. “We are pleased by the progress we’ve made in reducing the capital intensity of our business as reflected in the stress test results. We will continue to dynamically manage our capital to unlock meaningful value for shareholders, including with a planned increase to our dividend and added flexibility in our capital repurchase program.”

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