Goldman Sachs Takes the Income Crown Amid Dividend Raising Frenzy

JPMorgan Chase and Goldman Sachs are two of the largest banks in the world, but when it comes to protecting retiree income during market downturns, one bank's reputation may not be as safe as it seems.

In 2009, JPMorgan cut its quarterly dividend to $0.05, while Goldman kept paying $0.35 per quarter straight through the crisis. This unexpected move by JPMorgan challenges the conventional wisdom about which bank truly protects retiree income when markets turn ugly.

Today, both banks are still increasing their dividends, with Goldman raising its quarterly payout to $5.00 from $4.50, a forward rate of $20.00 after $18.00 over the trailing year. However, Goldman's dividend growth pace is slightly faster than JPMorgan's.

While both banks have similar current yields, Goldman trades at a much higher price, making its yield slightly more attractive to income investors. Additionally, Goldman has a cleaner crisis record, having paid dividends without interruption during the 2009 financial crisis.