Goldman Sachs resets price target for this Dow 30 dividend stock

Wall Street is taking a hard look astatine Salesforce pursuing its latest net report, sparking a mixed reaction.

The banal is simply a subordinate of the Dow Jones Industrial Average and 1 of the index's newer dividend-paying components, which makes the caller expert enactment each the much noteworthy for income investors.

Goldman Sachs lowered its terms people connected Salesforce (CRM) banal to $281, down from $330, portion keeping a “buy” standing connected the tech stock, per Tipranks.

It's a important reset but not an exit call, fixed the concern slope inactive sees upside from existent levels.

Salesforce's revenue, subscription revenue, and net margins each bushed Wall Street expectations.

For its fiscal 4th fourth ending Jan. 31, the institution reported the following, per CNBC.

• Salesforce reported gross of $11.20 billion versus estimates of $11.18 billion.

• Comparatively, adjusted EPS stood astatine $3.81 supra estimates of $3.04.

CRM forecast fiscal 2027 gross astatine a midpoint estimation of $46 billion, indicating year-over-year maturation of 10%, which was successful enactment with consensus.

Related: Salesforce softly cuts hundreds successful AI-related layoffs

However, it guided operating margins astir 60 ground points below what analysts had penciled in.

That borderline miss, adjacent if modest, spooked immoderate investors who were hoping for much nett enlargement alongside gross growth.

The bigger question Goldman flagged is hovering implicit Salesforce for months: Can the institution crook its artificial quality product, Agentforce, into a durable maturation motor earlier newer competitors adjacent the gap?

Down 47% from all-time highs, Salesforce banal offers shareholders a dividend output of 0.9%.

Given an yearly payout of $1.76 per share, the yearly dividend disbursal for CRM banal is astir $1.65 billion.

Comparatively, its escaped currency travel is forecast to summation from $14.40 cardinal successful fiscal 2026 to $15.9 cardinal successful 2027 and $21 cardinal successful 2030.

CRM has capable to much than treble its dividend and inactive reinvest successful maturation projects and accretive acquisitions.

• Annual dividend: Salesforce established a complaint of $1.76 per share.

• Dividend yield: It reached astir 0.9%, based connected caller stock price.

• Payout ratio: It represented astir 10.4% of FCF.

• Dividend growth: Salesforce initiated its dividend successful aboriginal 2024, marking a caller section for the stock.

• Share repurchase authorization: At $50 billion, it was 1 of the largest buyback programs successful bundle history.

• Free currency flow: The institution generated much than $14 cardinal successful escaped currency travel successful fiscal 2026, returning 99% to shareholders via dividends and buybacks.