Salesforce (CRM) Declares US$0.42 Per Share Quarterly Dividend

Salesforce (CRM) recently reaffirmed its commitment to shareholder value with a quarterly dividend and continued to build investor confidence through robust Q2 earnings results, showing impressive revenue and net income growth. The dividend announcement, coupled with a $20 billion increase in buyback authorization, reflects the company's strategic focus on rewarding shareholders. Despite these positive moves, Salesforce's stock remained largely flat over the past month, in line with broader market trends. This stability might also derive from the modest overall performance of major indexes, despite recent fluctuations in bond yields and rate-cut speculations.

Buy, Hold or Sell Salesforce? View our complete analysis and fair value estimate and you decide.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

The recent reaffirmation of Salesforce's commitment to shareholder rewards through dividends and a robust buyback program supports the company's narrative of enhancing long-term shareholder value. Over the past three years, Salesforce's total return, including share price gains and dividends, was 55.58%, underscoring solid long-term performance against the backdrop of an evolving technology sector. However, over the past year, Salesforce has underperformed the US Software industry, which returned 29.3%, reflecting broader market dynamics and specific challenges faced by the company.

Despite its substantial return over three years, Salesforce's shares remain below the consensus price target of $334.97, trading at a discount of approximately 33.6%. This price target hinges on analysts' expectations of revenue reaching $50.8 billion and earnings of $10.2 billion by 2028. The recent news, highlighting Salesforce's intensified focus on AI-driven automation and digital transformation, could potentially bolster revenue and earnings, aligning closer with these forecasts. However, moving from current earnings of $6.66 billion requires navigating competition and regulatory challenges. Furthermore, the commitment to returning cash to shareholders reflects confidence in Salesforce's earnings trajectory, potentially supporting near-term valuation improvements.

Dive into the specifics of Salesforce here with our thorough balance sheet health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com