Shares of Goldman Sachs and Wells Fargo hit record highs on Wednesday after Wall Street Banks announced a dividend hike following the end of Tuesday. Both will join Club Holdings laundry lists to hike payments to investors in 2025. Goldman said Tuesday it was increasing its quarterly dividend payments from $3 to $4 per share after the financial company passed the Federal Reserve annual stress test on Friday night. This is a 33% increase, the largest of the 15 portfolio names to date that have boosted dividends so far this year. Meanwhile, Wells Fargo hiked quarterly payments from 12.5% to 40 cents to 45 cents. The dividend hike by Goldman and Wells is generally a positive sign for investors, along with other club stocks that have boosted distributions during the first six months of the year. Increased dividends require companies to distribute more profits to shareholders. This usually means that management has strong enough belief in cash flow to support larger payments over time. A proper case: Goldman and Wells Fargo shares jumped to nearly 1.5% and 1% on Wednesday, respectively. This follows 13 other club holdings that earn dividends earlier this year. After Goldman, Danaher did the largest dividend hike on a percentage basis at 18.5%. In February, the company announced it would increase its quarterly payments from 27 cents to 32 cents per share. Eaton, Texas Roadhouse and Costco have also helped to contribute to shareholders by double-digit percentage over the past few months. This is the complete list of Club Holdings, which increased dividends in 2025, including those not previously mentioned, including Home Depot, Meta Platforms, Linde, Apple, BlackRock, Salesforce, Coterra, and Dupont. Currently, the majority of Club Holdings (27 out of 30) pay dividends. The only three are Amazon, Crowdstrike and Palo Alto Networks. On that side, Nvidia is only a small cent per share. Of course, dividends are just one factor to consider when deciding whether to invest in stocks or not. For most of our names, their annual yields are rather small in the grand scheme of things. Consider the metaplatform that last year began paying dividends for the first time in its history. In February this year, the social media giant increased its quarterly dividend from 50 cents to a share of 52 cents. Still, the stock is trading near record highs on Wednesday. Facebook’s parent stock is up 22% per year, compared to Tech Heavy Nasdaq Composite’s approach of about 5.5%. However, if there is a steady dividend growth with stock prices rising, then the total revenue can improve over time. This applies to uncoveted stocks, usually for large payments, such as the Texas Roadhouse, which supports a 1.44% yield. Over the past decade, stock prices have increased by around 404% on price revenue basis and 494% on total revenue basis. In fact, we strongly encourage members to reinvest their dividends to earn compound interest benefits. So who is next? We look forward to the additional portfolio companies launching dividend hikes in 2025. Elilily raised her dividend of 15% in December last year. I’d like to see this again later this year. Meanwhile, Microsoft and Honeywell have announced an increase in dividends in September in recent years. Also, Capital One didn’t raise dividends like its Portfolio Banking Pier on Tuesday, but management is expected to announce renewed capital gains to shareholders later this year. In fact, Truist analysts said Monday that credit card issuers have an excess of $15 billion in capital. This is about 11% of the company’s market capitalization. Still, Jim Kramer believes the company will also invest in the business. “I think [CEO] Richard Fairbank can take part in its capital and actually become a rival to the American Express,” Jim said at a meeting Wednesday morning. Jim receives a trade warning after Jim purchases shares on CNBC TV and before making a trade before purchasing or selling trades. The obligation exists by receiving information provided in connection with the Investment Club.
