A $10,000 Investment in Goldman Sachs in 2016 Is Now Worth More Than $60,000. Its Record Revenue This Year Says the Run Isn't Over.

In November 2016, Goldman Sachs stock was priced at roughly $176 per share, offering a quarterly dividend of $0.65 per share. Fast forward to November 2026, and the stock has skyrocketed to around $900 per share, with a more substantial quarterly dividend of $5 per share. This remarkable growth is not solely attributed to the stock price but also the consistent dividend increases.

Assuming an initial investment of $10,000 in Goldman Sachs in 2016, reinvesting the quarterly dividends, the investment would be worth approximately $61,900 today, given an average annualized return of 20%. Alternatively, contributing $100 per month to that $10,000 investment would result in a portfolio valued at about $95,800 today.

Despite the current stock price of $900 only representing a 2% increase year-to-date and a 14% rise over the past 12 months, Goldman Sachs is experiencing record performance. The financial giant reported a 23% year-over-year increase in revenue to $18.7 billion in its recent third-quarter earnings, marking it as the second-highest quarterly revenue ever. Net earnings also surged by 29% to $5.3 billion, and earnings per share climbed 39% to $17.01 per share.

The surge in revenue is primarily driven by investment banking fees and equities trading income, both of which have seen significant growth. Investment banking fees have risen by 40% to $9.5 billion, while equities trading income has jumped by 57% to $19.2 billion. Additionally, the asset and wealth management sector has consistently contributed steady revenue, with $97 billion in net inflows in the third quarter, adding to Goldman Sachs' $4.1 trillion in assets under supervision.

The company has demonstrated a strong track record, achieving 35 consecutive quarters of net inflows into its asset and wealth management business, which also includes equity, fixed income, and alternative investments. Goldman Sachs has raised its quarterly dividend by 11% to $5 per share, marking the 15th consecutive year of annual dividend increases. The dividend boasts a high yield of 2.24% and a low payout ratio of 25%, indicating ample potential for further dividend growth.

With a low price-to-earnings ratio of 12, Goldman Sachs appears to be an attractive long-term investment, given its recent performance trends. The low valuation, coupled with steady revenue growth and a reliable dividend, positions the stock as a compelling long-term buy-and-hold option. As Goldman Sachs continues to navigate the economic landscape, it seems likely that the company's upward trajectory will persist.