Goldman Sachs

Goldman Sachs is one of the world's leading investment banks, prominent in mergers advisory, capital markets, trading and asset and wealth management, with a more recent push into transaction banking. Its earnings are inherently cyclical, tied to deal flow, market activity and trading conditions, which can swing results sharply between years. Goldman has paid a dividend for many years and, since the financial crisis, has raised it markedly, using annual stress-test results as a springboard for larger increases and heavy buybacks. The yield is moderate and coverage generally strong in good years, though the payout ultimately rides on volatile capital-markets earnings. It offers a growing, well-covered dividend backed by a premier franchise, tempered by the cyclicality of investment banking.