Goldman Sachs announced that it will redeem all of its outstanding Series T preferred stock and the corresponding depositary shares on May 10, 2026. The preferred shares, issued in April 2021, carry a liquidation preference of $25,000 per share and a fixed dividend rate of 3.80% per annum until the redemption date. The redemption price is set at $25,000 per share plus any declared and unpaid dividends.
The decision to redeem before the scheduled dividend reset reflects Goldman Sachs’ strategy to optimize its capital structure. By retiring the Series T shares, the firm eliminates the 3.80% dividend obligation that would otherwise reset to a rate tied to the five‑year Treasury yield plus a spread after May 10, 2026. This move reduces the bank’s fixed financing costs and frees capital that can be deployed in other growth initiatives or used to strengthen regulatory buffers.
The redemption will also impact Goldman Sachs’ capital ratios. Removing the preferred equity reduces the bank’s leverage and can improve its Tier 1 and total capital ratios, thereby enhancing its ability to meet regulatory capital requirements. The reduction in dividend payouts also improves cash flow, providing additional flexibility for future capital‑raising or investment decisions.
Goldman Sachs has a history of redeeming preferred‑stock series when the terms allow. Earlier in the year the firm announced the redemption of Series Q, R, and S preferred stock on February 10, 2026. The pattern suggests a deliberate strategy to retire preferred equity that is no longer cost‑effective or that no longer aligns with the bank’s long‑term capital strategy.
The redemption aligns with the dividend declaration made on April 10, 2026, when Goldman Sachs declared dividends on its preferred stock, payable on May 10, 2026. By redeeming the shares on the same day as the final dividend payment, the firm ensures that holders receive the last declared dividend while simultaneously removing the preferred shares from its balance sheet. This coordinated timing underscores the firm’s focus on efficient capital management and its commitment to maintaining a robust capital position in a low‑interest‑rate environment.
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