When Goldman Sachs (ticker: GS) rang the opening bell of the Dow Jones Industrial Average (DJIA) on September 23, 2013 — replacing Bank of America — it was more than another ticker change. This was Wall Street’s grandest stage welcoming its most storied firm. Goldman’s passage from crisis survivor to Dow component captured decades of highs and lows — from the heart‑stopping market crash of 2008 to triumphant deal‑making and record profits.
Today, Goldman’s lofty share price makes it the heaviest‑weighted Dow stock, and its moves can sway the index more than any other. For investors and hedge funds, GS’s journey is both symbolic proof of its resilience and a very real driver of market momentum.
Goldman’s Comeback Before the Dow
Before the Dow bell rang, Goldman had weathered some wild times. At the start of 2008, its stock opened at roughly $160, but the financial crisis crashed it to $63 in 2009 — though it closed the year at a rebound of roughly $129, per Statmuse.
Unlike some banks, Goldman waited longer to tap government lifelines. It repaid its $10 billion Treasury Department Troubled Asset Relief Program (TARP) bailout by 2009, something CEO Lloyd Blankfein later said he was “proud” of, even as he expressed “regret” over crisis excesses.
Between 2009 and 2012, Goldman steadily rebuilt its core. It strengthened capital ratios, refocused on its powerful trading and underwriting franchises, and resumed profitability. By late 2013, GS’s share price was back in the $103-142 range, well below 2007 highs of $187 but vastly above 2009 levels, and the bank was generating healthy revenues again.
Goldman’s quarterly financial reports covering the previous 12 months show its annual revenue dipped from above $40 billion in late 2009, dropping below $30 billion in 2011-2012 before rallying to $34.2 billion by the end of 2013, according to Macrotrends. In short, Goldman entered the Dow Jones on the upswing from crisis.
Goldman Rides the Bull
In the five years after its Dow entry, Goldman rode the broader market’s bull run. Revenues held steady in the low-$30 billion range in 2014-2017, then jumped after 2018. By 2021, surging deal fees and frenetic trading drove revenue to $59.3 billion — a record in Goldman’s history.
Source: Macrotrends
Earnings and stock performance followed. By 2018, GS shares had climbed into the $130-233 range, considerably more than they were five years previously. Even after the sharp 2022 market downturn — Goldman’s revenue fell to $47.4 billion — the bank rebounded strongly by 2024 with $53.5 billion in revenue.
Goldman Sachs (GS) Stock Total Return Chart. Source: FinanceCharts
As at the time of writing, GS stock trades at around $705 (TradingView), with a market capitalization of over $217 billion, a far cry from 2013 levels.
Shareholders’ Goldman Reward
Net income similarly rebounded. This expansion funded growing dividends and share buybacks. Notably, Goldman began paying regular dividends since at least 1999. From modest quarterly payouts ($0.12 in August 2000) it has raised its dividend to $4.00 per share (paid quarterly) for its next payment, due in September this year. At the current stock price, that translates to about 2.26 percent dividend yield.
Comparing that with Bank of America (2.37 percent) or J.P.Morgan (1.87 percent) yields renders a clear picture of Goldman’s increased payout growth and valuation.
Profitability has also peaked. Goldman announced early this year that Q4 2024 marked its largest quarterly profit in over three years, as investment banking fees surged and trading stayed strong. This helped underpin the 2024-2025 revenue lift. With its cost structure largely optimized, GS’s return on equity has improved — a key metric for investors.
Goldman Moves, Dow Jones Follows
Goldman’s inclusion in the Dow Jones has tracked these swings. Today its massive share price means an outsized influence on the index: at roughly 10 percent weight (Slickcharts), Goldman moves the Dow more than any other component. In fact, Goldman’s five-year total return (312 percent) outstripped peers like Morgan Stanley (242 percent) per Finance Charts.
For hedge funds, GS has been a big win. But the bank’s high price also makes it a double-edged sword in market routs.
Steering Goldman’s Treasure Ship
Goldman’s place in the Dow Jones also reflects how management steers the ship. Lloyd Blankfein led the post-crisis rebuild through 2018, handing the reins to David Michael Solomon that year. Solomon oversaw the consumer expansion and then contraction.
Recently, Goldman has begun planning its next leadership reshuffle. In February, President John Waldron was added to the board, signaling he is the likely successor to CEO Solomon. Another possible candidate is veteran Michael Thompson, just appointed Goldman Sachs’s head of government and regulatory affairs.
For investors, this may be a hint that change is coming at the top, even as results improve.
Can Goldman Still Make Good on Wall Street?
The key question for Goldman — and by extension, its Dow weighting — is how it leverages its strengths. The bank now holds a hefty slice of the index by price, but its future performance depends on the health of deal markets and its ability to extract value from legacy businesses.
If Wall Street boom times return (IPOs, M&A, volatile trading), Goldman stands to ride those tails again. On the other hand, any renewed turmoil could test even this veteran firm’s resilience and its impact on the Dow Jones.
Author: Richardson Chinonyerem
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
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