10 Dividend Stocks with Sustainable Payout Ratios

2. The Goldman Sachs Group, Inc. (NYSE:GS)

5-Year Average Payout Ratio: 27.45%

The Goldman Sachs Group, Inc. (NYSE:GS) is a New York-based multinational investment bank. In the first quarter of 2025, the company posted solid financial results, demonstrating strength across its main business segments despite ongoing macroeconomic challenges. Net revenues reached $15.06 billion, representing a 6% increase from the same period the previous year. Net earnings came in at $4.74 billion, with earnings per share at $14.12, surpassing both Q1 and Q4 of 2024. These results reflected a strong return on equity (ROE) of 16.9% and return on tangible equity (ROTE) of 18.0%. The company’s operational efficiency also improved, with an efficiency ratio of 60.6%, slightly better than the prior year, even as operating expenses rose by 5%, largely driven by higher compensation linked to stronger performance.

The Goldman Sachs Group, Inc. (NYSE:GS)’s cash position also came in strong as it ended the quarter with $167 billion available in cash and cash equivalents. The company also returned $5.34 billion to shareholders, including $976 million in dividends. Due to this cash generation, it has been able to maintain dividend payments since 1999. Its quarterly dividend comes in at $3.00 per share for a dividend yield of 2.36%, as of April 17.

The number of hedge funds tracked by Insider Monkey at the end of Q4 2024 owning stakes in The Goldman Sachs Group, Inc. (NYSE:GS) jumped to 81, up from 72 in the previous quarter. The consolidated value of these stakes is over $5.8 billion. With over 6 million shares, Fisher Asset Management was the company’s leading stakeholder in Q4.