A strong resurgence in investment banking and trading activities resulted in a strong showing for the banks in the December 2025 quarter. Notably, even amid this robust performance, Goldman Sachs (GS) stood out in particular. Not only did its earnings handily beat Street expectations, but the banking major also increased its quarterly dividend by 12.5% to $4.50 per share. The increased dividend will be paid on March 30 to shareholders of record on March 2.
Notably, the company has been raising dividends consecutively over the past 14 years, and its current dividend yield is 1.64%. Moreover, with a payout ratio of just 27.3%, the headroom for further growth remains.
Founded in 1869 as a small brokerage in New York City, Goldman Sachs has gone on to become a financial behemoth over the years, with a presence in investment banking and advisory, asset and wealth management, trading and securities services, and consumer and wealth solutions. The firm serves corporations, institutions, governments, and high-net-worth clients with a broad suite of advisory, financing, trading, and investment solutions.
Valued at a market cap of $288.5 billion, the GS stock is up 52% over the past year.
So, post its Q4 results, what to make of the GS stock now? Can the stock be a sound investment, or is it an avoid now? Let’s find out.
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On the surface, Goldman Sachs’ numbers reflected a mixed bag, marked by an earnings beat but a revenue miss. In fact, net revenues at $13.45 billion were down 3% on an annual basis. However, this was due to a $2.26 billion hit taken by the company due to discarding its Apple (AAPL) Card portfolio. Thus, while this resulted in a significant reserve release, it significantly boosted the bottom line and simplified their balance sheet. A 25% jump in investment banking fees revenues to $2.58 million was particularly noteworthy, signifying recovering M&A activity, as the company maintained its number one position in the space. Also, revenues from equity trading grew by 25% as well in the same period to…
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