4 Stocks Lift Dividends As Much as 33% As Banks Pass Stress Tests

Globe and Mail

14-07-2025

Several prominent stock market players just declared, or announced intentions to declare, large dividend increases. This is particularly true among some of the United States' biggest banks. Many banks announced big capital return plans after they passed the Federal Reserve's 2025 bank stress tests in resounding fashion. These tests evaluate how well these banks can handle a severe recession.
After passing, many big banks announced huge buyback programs. However, many also outlined their intentions to boost dividends by as much as 33%. These dividends need approval from each company's Board of Directors. However, this is really just a formality, as dividend increase proposals are almost never struck down. Investors can feel confident that the proposed increases will lead to more income in the future. Let's break down these dividend boosters. All dividend yield and return figures use data as of the July 3 close.
The Lone Non-Bank Wolf: Worthington Enterprise Gets 12% Dividend Raise
Worthington Enterprises (NYSE: WOR) is one of the more prominent stocks that have boosted dividends recently outside of the banking industry. The company primarily makes pressurized tanks for propane, oxygen, water, and other substances for both commercial and consumer customers. On June 24, the company declared a quarterly dividend of $0.19 per share, a 12% increase over the prior quarter. Note that the word "declared" means that the dividend is officially approved, unlike the three names below.
This dividend is payable on Sept. 29 to shareholders of record at the close of business on Sept. 15. Overall, this increased dividend gives the stock an indicated dividend yield of 1.2%. Worthington has been a very strong performer in 2025, with a total return of 64% as it saw record production and shipments in Q1.
STT: Bank & Asset Management Hybrid Lifts Dividend of 11%
State Street (NYSE: STT) passed the Fed's stress test, as its Stress Capital Buffer (SCB) was ' well below ' the 2.5% floor. This essentially means that in a severe scenario, the change in the company's ability to meet capital requirements was minimal, indicating resilience. Due to this, the company felt comfortable proposing a dividend increase of 11% in Q3, moving the payment up to $0.84.
Since the dividend has not yet been officially declared, the record and payout dates are still unknown. Based on history, investors should expect the record date to come in the first few days of October, while the payable date will be approximately 10 days later. Assuming the Board approves the dividend, the stock's indicated dividend yield would be 3%. State Street's largest revenue stream comes from its role as a custodian for asset managers, placing it in the banking industry. However, it is also well known by retail investors for its index-tracking SPDR ETFs.
Stress Test Makes Bigger Mark on Goldman, But So Does Its Huge Dividend Boost
Another name passing the Fed's test was The Goldman Sachs Group (NYSE: GS). The company said it expects its SCB requirement to be 3.4% after the tests. This means that the company needed a 3.4% buffer to meet its capital requirements in a severe scenario. Thus, this scenario would affect Goldman more than State Street, which needed a buffer of less than 2.5%.
But Goldman still passed the test because it has the capital required to account for this larger negative effect. As a result, Goldman announced plans to increase its dividend by a whopping 33%. This would increase the quarterly figure to $4 per share. The record date for this next dividend would likely come at the end of August or the beginning of September. The payable date would be around four weeks later. If approved, Goldman's indicated dividend yield would be nearly 1.1%.
BK: Yield Projection Hits 2.3% After Stress Test Win
Bank of New York Mellon (NYSE: BK) also passed the Fed's latest bank stress test. The company's SCB was also below the 2.5% floor, putting it in the same highly resilient category as State Street.
The firm proceeded by announcing its intention to increase its quarterly dividend by 13% to $0.53 per share. The record date is likely to be in the third or fourth week of July, with the payable date being around 10 days after. Assuming approval, the stock has an indicated dividend yield of 2.3%.
Overall, all of these companies are doing what their shareholders want: rewarding them with more cash as they achieve big-time wins. Goldman's striking 33% dividend increase stands out, helping income become a bigger part of its investment case.
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