Insights on The Goldman Sachs Group Inc's Upcoming Dividend Payment
The Goldman Sachs Group Inc (GS, Financial) recently announced a dividend of $2.75 per share, payable on 2023-12-28, with the ex-dividend date set for 2023-11-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into The Goldman Sachs Group Inc's dividend performance and assess its sustainability.
What Does The Goldman Sachs Group Inc Do?
Goldman Sachs is a leading global investment banking and asset management firm. Approximately 20% of its revenue comes from investment banking, 45% from trading, 20% from asset management and 15% from wealth management and retail financial services. Around 60% of the company's net revenue is generated in the Americas, 15% in Asia, and 25% in Europe, the Middle East, and Africa.
A Glimpse at The Goldman Sachs Group Inc's Dividend History
The Goldman Sachs Group Inc has maintained a consistent dividend payment record since 1999. Dividends are currently distributed on a quarterly basis. The Goldman Sachs Group Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down The Goldman Sachs Group Inc's Dividend Yield and Growth
As of today, The Goldman Sachs Group Inc currently has a 12-month trailing dividend yield of 3.04% and a 12-month forward dividend yield of 3.27%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, The Goldman Sachs Group Inc's annual dividend growth rate was 29.40%. Extended to a five-year horizon, this rate decreased to 25.80% per year. And over the past decade, The Goldman Sachs Group Inc's annual dividends per share growth rate stands at an impressive 16.00%. Based on The Goldman Sachs Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of The Goldman Sachs Group Inc stock as of today is approximately 9.58%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, The Goldman Sachs Group Inc's dividend payout ratio is 0.49.
The Goldman Sachs Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks The Goldman Sachs Group Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. The Goldman Sachs Group Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and The Goldman Sachs Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The Goldman Sachs Group Inc's revenue has increased by approximately 10.80% per year on average, a rate that outperforms approximately 57.46% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, The Goldman Sachs Group Inc's earnings increased by approximately 10.80% per year on average, a rate that outperforms approximately 48.16% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 17.10%, which outperforms approximately 63.34% of global competitors.
Engaging Conclusion: Dividend Perspectives for The Goldman Sachs Group Inc
Considering The Goldman Sachs Group Inc's consistent dividend payments, robust dividend growth rate, moderate payout ratio, and solid profitability and growth metrics, investors may find the company an attractive candidate for their dividend portfolios. The upcoming dividend payment further exemplifies The Goldman Sachs Group Inc's commitment to returning value to shareholders. With these financial indicators, The Goldman Sachs Group Inc stands as a noteworthy consideration for value investors focused on income generation and long-term growth. Will The Goldman Sachs Group Inc maintain its dividend achiever status and continue to reward investors in the years to come?
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
