Key Takeaways
📈 Goldman Sachs offers a 2.18% forward dividend yield with consistent annual growth and a low 27% payout ratio, supporting strong dividend sustainability.
💵 The firm reported negative operating and free cash flow in the trailing twelve months, reflecting working capital pressures and high investing activity.
📊 Analyst sentiment is mixed with recent downgrades, but the consensus price target of $593.40 suggests modest upside from current levels.
Last Update 5/7/25
Goldman Sachs stands as one of the most influential financial institutions in the world, with deep roots in investment banking, trading, and asset management. Backed by a seasoned leadership team and a strong balance sheet, the firm continues to deliver consistent performance across its core businesses.
With a forward dividend yield of 2.18% and a payout ratio of just over 27%, Goldman offers a steady stream of income alongside long-term growth potential. Recent earnings showed strength in trading, strategic leadership expansion, and continued investment in technology, all while navigating headwinds in deal making and economic policy uncertainty.
Recent Events
Goldman’s most recent quarter wrapped up on March 31, 2025, and the numbers painted a solid picture. Revenue grew 6.3% year-over-year, with net income reaching $14.13 billion over the last twelve months. Earnings per share came in at a hefty $43.07. These results came despite macro headwinds and some pockets of uncertainty in the rate environment. What they show is a bank that knows how to operate efficiently no matter the conditions.
Return on equity was 12.22%, which might not grab headlines in the way a tech firm might, but for a global financial institution, that’s a strong showing. The firm’s price-to-book ratio currently sits at 1.54, suggesting a fair valuation relative to its assets and balance sheet strength. Book value per share clocks in at $371.45 while the stock trades near $549. That pricing reflects investor confidence in the company’s ongoing performance and capital return capabilities.
Even with its massive size, Goldman Sachs remains agile. It’s sitting on a staggering $1 trillion in cash—plenty of dry powder should opportunities or challenges arise. This, coupled with a strategic focus on profitability and risk-adjusted returns, is exactly the kind of foundation dividend-focused investors can appreciate.
Key Dividend Metrics
📈 Forward Dividend Yield: 2.18%
💸 Annual Dividend Payout: $12.00 per share
📆 Ex-Dividend Date: May 30, 2025
🔄 Payout Ratio: 27.27%
📊 5-Year Average Yield: 2.28%
🚀 Dividend Growth Rate: Steady and reliable
🏛 Dividend Payment History: Predictable, no surprises
Dividend Overview
There’s a quiet reliability to how Goldman handles its dividend strategy. At $12.00 per share annually, the payout is solid without being aggressive. The current forward yield of 2.18% might seem modest compared to high-yield names, but it’s backed by strong fundamentals and careful financial management.
Goldman’s dividend doesn’t demand attention, and that’s part of its strength. It’s not subject to sudden cuts or radical shifts. Management has kept increases tied closely to earnings power, which ensures sustainability. And with a payout ratio of just over 27%, the dividend is well-supported by profits, leaving plenty of room for reinvestment in the business or additional returns through buybacks.
The ex-dividend date is right around the corner on May 30, with the next dividend payment scheduled for June 27. These are the kinds of details income investors track closely, and Goldman has kept its schedule tight and dependable.
Dividend Growth and Safety
Goldman doesn’t chase trends. It grows its dividend gradually, almost quietly. But don’t let that modest pace fool you—the firm has doubled its dividend over the last seven years, climbing from $5.00 in 2018 to $12.00 today. That kind of consistency doesn’t get flashy headlines, but it adds up in a dividend portfolio.
One of the key reasons GS can continue doing this is its strong earnings base and conservative capital strategy. With net income topping $14 billion and ROE above 12%, there’s no strain on the business when it comes time to fund those payouts. Even with a high debt-to-equity ratio—common in investment banking—the firm’s liquidity profile is strong, with a current ratio of 1.54 offering reassurance.
The stock’s performance over the past year backs this up. It’s moved from a low of $437.37 to a high of $672.19 and is currently trading near $549. That’s a 22.91% rise over the past 52 weeks, well ahead of the S&P 500’s gain over the same period. Volatility, with a beta of 1.31, is something to consider, but long-term investors who’ve held through the swings have been rewarded.
Goldman’s PEG ratio currently sits at 6.20, indicating that while the expected growth rate isn’t breakneck, it’s still built on a solid and scalable model. That’s just fine for dividend-focused investors who don’t need wild growth—just a dependable check every quarter and the knowledge that the business behind it is built to last.
In the end, Goldman Sachs doesn’t need to shout about its dividend. It just keeps paying it. And for many investors, that’s exactly the kind of voice they’re looking to add to their portfolio.
Cash Flow Statement
Goldman Sachs’ trailing twelve-month (TTM) cash flow shows a noticeable shift in how the firm is managing its liquidity. Operating cash flow came in at negative $22.4 billion, continuing a multi-year trend of outflows in core business operations. This negative figure reflects ongoing pressures from working capital shifts, client activities, and broader market dynamics. Free cash flow was also negative at $24.5 billion, indicating that after capital expenditures—modest at $2.09 billion—the firm still saw net cash outflows. It’s a clear sign that while earnings are strong on paper, the actual movement of cash through the business is under strain, at least in the short term.
On the financing side, Goldman raised $86 billion in new debt while repaying nearly $70 billion. It also continued its buyback program, spending over $13 billion to repurchase shares. This was offset in part by a strong $42.98 billion positive financing cash flow, reflecting strategic capital structure management. Meanwhile, investing activities used up $64.39 billion, driven by deployment across financial instruments and possibly longer-duration assets. The end result was a cash position that declined to $165.57 billion, still sizable but down considerably from previous years, reflecting the cumulative impact of operational and investing outflows.
Analyst Ratings
📉 Goldman Sachs has recently seen a shift in analyst sentiment, with several major firms reassessing their outlooks in light of macroeconomic pressures. Morgan Stanley downgraded the stock from “Overweight” to “Equal Weight,” pointing to heightened sensitivity in Goldman’s investment banking revenue streams. With deal volumes fluctuating and advisory activity cooling, there’s growing concern about the near-term earnings trajectory. The bank’s exposure to consumer credit, particularly its involvement in the Apple Card business, also raised some red flags due to a notable portion of subprime borrowers.
📉 Oppenheimer followed suit with a downgrade from “Outperform” to “Perform.” Their decision was influenced by lingering uncertainty surrounding global trade policies. Ongoing tariff questions have made companies hesitant to pull the trigger on mergers and acquisitions—a space where Goldman typically shines. This more cautious corporate environment could put a damper on the anticipated recovery in deal-making revenue.
📈 On the other side, not all analysts are turning bearish. Barclays reiterated its “Overweight” rating, although they did trim their price target slightly. Their view remains constructive, especially when looking at Goldman’s diversified business model and long-term profitability. Wells Fargo also kept its “Overweight” stance, adjusting for current market dynamics but staying confident in the firm’s broader positioning.
🎯 As of now, the overall analyst consensus sits at “Hold,” with a consensus price target of $593.40. This reflects a modest potential upside from where shares are currently trading and suggests a measured optimism—acknowledging short-term challenges while still seeing value in Goldman’s core strengths.
Earning Report Summary
Goldman Sachs kicked off 2025 with earnings that came in ahead of expectations, showing some strong momentum across parts of the business. For the first quarter, the firm reported $4.74 billion in net income, or $14.12 per share, on revenue of $15.06 billion. That’s a 15% jump in profit compared to the same time last year—definitely a sign the firm is navigating the current economic landscape with skill.
Trading Drives the Quarter
One of the biggest highlights came from the Global Banking & Markets division. This part of the business brought in $10.71 billion in revenue, which was up 26% year-over-year. Equities trading, in particular, stood out. It hit a record $4.19 billion, climbing 27% from last year. Clients were clearly active in the market, and Goldman was right there to meet the demand as investors looked to make moves amid policy shifts and economic uncertainty.
Mixed Results in Investment Banking
While trading had a great quarter, investment banking wasn’t quite as strong. Fees were down 8% overall, and advisory revenues fell 22%. According to CEO David Solomon, clients are still sitting on the sidelines a bit, waiting for more clarity around the broader economic picture. He mentioned that Goldman’s deal pipeline continues to build, now growing for the fourth straight quarter, but timing remains uncertain. Solomon’s advice to clients: “go slow” until there’s a bit more confidence in the policy direction.
Capital Moves and Looking Ahead
Even with the slowdown in advisory work, the firm made a big move to return value to shareholders. Goldman Sachs approved up to $40 billion in share repurchases, a decision that gives them flexibility and reinforces confidence in their capital position. It’s the kind of strategic shift that fits with the tone of the quarter—careful, opportunistic, and mindful of both risk and reward.
Looking forward, Goldman’s leadership continues to express cautious optimism. There’s hope that dealmaking activity could pick up in the back half of the year, especially if economic uncertainty eases. In the meantime, the firm seems focused on leaning into its trading strength while keeping a close eye on market shifts that could open the door for more advisory activity down the line.
Management Team
Goldman Sachs continues to focus on leadership stability and strategic direction with David Solomon serving as Chairman and CEO and John Waldron as President and COO. Waldron’s recent appointment to the Board of Directors highlights his role in shaping the firm’s future leadership, and both executives received five-year retention packages valued at roughly $80 million each. This move reinforces Goldman’s intention to maintain consistency at the top during a period of transformation and market uncertainty.
The management committee has seen some key additions, with Matt McClure, Anthony Gutman, and Kim Posnett stepping in as Global Co-Heads of Investment Banking. The Fixed Income, Currency, and Commodities division is now led by Jason Brauth, Kunal Shah, and Anshul Sehgal. Meanwhile, the Equities team is under the guidance of Dmitri Potishko, Cyril Goddeeris, and Erdit Hoxha. These updates reflect Goldman’s aim to deepen its expertise in its strongest divisions. The firm is also pushing into technology with Marco Argenti, the Chief Information Officer, leading a major push into artificial intelligence to drive operational efficiency and innovation across business units.
Valuation and Stock Performance
Goldman Sachs’ stock was recently priced at $549.36 as of May 6, 2025, down slightly for the day but still holding onto a solid 22.91% gain over the past year. This outpaced the broader market and reflects investor confidence in the firm’s earnings momentum and strategic initiatives. Trading around a trailing P/E ratio of 12.75 and a forward P/E of 12.41, Goldman is valued in line with its peers, balancing steady profitability with moderate growth expectations.
The consensus analyst price target stands at $593.40, suggesting room for further upside. The price-to-book ratio of 1.54 indicates investors are placing a premium on Goldman’s asset quality and future cash flow generation. For dividend investors, the current yield of 2.18%, with a $12.00 annual payout and a 27.27% payout ratio, offers a steady return with room for future growth. The combination of trading strength and disciplined capital management has contributed to Goldman’s steady performance, though slower investment banking activity has muted some of the momentum.
Risks and Considerations
While Goldman Sachs has navigated recent market cycles well, there are clear risks on the horizon. Investment banking revenue has softened, especially in advisory, where clients are holding back due to economic and geopolitical uncertainty. This hesitation has been a drag on what is usually a high-margin business for the firm. David Solomon has noted that the backlog remains strong, but timing remains an issue as companies wait for more clarity before acting.
Another area to watch is the firm’s exposure to consumer credit, particularly its partnership with Apple Card. In an environment where credit quality can shift quickly, that exposure adds an element of risk. Goldman also operates with significant leverage—a debt-to-equity ratio over 590%—which is standard for an investment bank but still a factor if rates continue to rise or credit markets tighten.
Investors should also be aware of the firm’s reliance on trading revenues. These tend to be volatile and closely tied to macroeconomic conditions and investor sentiment. Regulatory shifts and international policy developments can also affect operations, especially in areas like capital requirements and cross-border banking.
Final Thoughts
Goldman Sachs continues to adapt to a shifting financial environment with a firm grip on its most profitable divisions and a leadership team aligned around long-term performance. The stock has delivered solid returns, underpinned by strong trading income, thoughtful capital deployment, and a growing dividend. Still, caution is warranted given slower deal activity, high leverage, and unpredictable external factors. The firm remains one of the most recognizable players in global finance, with its future closely tied to how well it can manage risk and unlock opportunities in a complex market landscape.