3 Big Banks Plan Double Digit Dividend Increases After Passing Fed Stress Test

Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C) announced double-digit dividend hikes after clearing the Federal Reserve's 2026 stress tests, with all three maintaining capital ratios well above the 4.5% regulatory minimum.

Goldman Sachs will raise its quarterly dividend 11% from $4.50 to $5.00 per share. Wells Fargo plans an 11% increase from $0.45 to $0.50 per share. Citigroup leads the trio with a 12% bump from $0.60 to $0.67 per share.

The stress test results confirm all three banks held capital cushions exceeding regulatory requirements, demonstrating resilience against adverse economic scenarios modeled by the Fed. The dividend increases signal management confidence in sustained capital generation and return to shareholders following years of regulatory scrutiny and balance sheet repair at WFC and C.

The moves position these institutions to compete more aggressively for income-focused investors while maintaining regulatory compliance. Goldman's larger absolute dividend reflects its higher share price, while the percentage increases across all three remain tightly clustered in the 11-12% range.