Goldman Sachs Just Hiked Its Dividend 12.5%. Should You Buy GS Stock Now?

Core Viewpoint - A strong resurgence in investment banking and trading activities led to impressive results for Goldman Sachs in the December 2025 quarter, with earnings exceeding expectations and a notable dividend increase [1] Group 1: Financial Performance - Goldman Sachs reported net revenues of $13.45 billion, down 3% year-over-year, primarily due to a $2.26 billion loss from discarding its Apple Card portfolio [5] - Investment banking fees revenues increased by 25% to $2.58 billion, indicating a recovery in M&A activity, while equity trading revenues also grew by 25% to $4.31 billion [5] - Net interest income surged by 58.1% year-over-year to $3.71 billion, benefiting from the Federal Reserve's interest rate cuts [6] Group 2: Dividend and Shareholder Returns - Goldman Sachs raised its quarterly dividend by 12.5% to $4.50 per share, with the payment scheduled for March 30 to shareholders of record on March 2 [1] - The company has consistently increased dividends for 14 consecutive years, with a current dividend yield of 1.64% and a payout ratio of 27.3%, indicating potential for further growth [2] Group 3: Company Overview - Founded in 1869, Goldman Sachs has evolved into a major financial institution, offering a wide range of services including investment banking, asset management, and trading [3] - The company's market capitalization stands at $288.5 billion, with its stock price increasing by 52% over the past year [4]