Salesforce Inc. (CRM) has been spotlighted as one of the 'Dogs of the Dow' due to its elevated dividend yield and recent stock price decline. Investors are weighing whether the current valuation presents a compelling entry point.
- CRM’s dividend yield is 2.8%, above the Dow average of 1.9%
- Stock price declined 14% over the past three months to $210 as of December 6, 2025
- P/E ratio of 32.1 is below the 5-year average of 38.4
- Adjusted EPS of $1.62 matched expectations
- Net institutional buying of 1.7 million shares in November
- Options volume rose 40% over the last week
Salesforce (CRM) has drawn renewed attention after being classified among the 'Dogs of the Dow'—a group of high-dividend-yielding stocks from the Dow Jones Industrial Average. The designation stems from CRM’s current dividend yield of 2.8%, significantly above the average of the 30 Dow components, which stands at 1.9%. This yield premium reflects a 14% drop in CRM’s share price over the past three months, bringing the stock to approximately $210 per share as of December 6, 2025. The 'Dog of the Dow' strategy historically involves buying the highest-yielding stocks from the Dow at year-end, with the belief they are undervalued and poised for recovery. Salesforce’s recent pullback follows a broader correction in tech stocks after Q3 earnings missed revenue expectations by 2.3% and cloud infrastructure spending cooled. Despite these headwinds, CRM reported adjusted EPS of $1.62, in line with estimates, and maintained a strong cash flow from operations at $2.4 billion over the trailing twelve months. Market analysts note that the stock’s price-to-earnings ratio of 32.1 is below its 5-year average of 38.4, suggesting potential undervaluation. Institutional activity has shifted in recent weeks, with net buying of 1.7 million shares in November, signaling cautious optimism. However, ongoing competition from Microsoft (MSFT) and Adobe (ADBE) in the CRM space remains a structural risk. The move could impact both long-term investors seeking dividend income and short-term traders looking for momentum plays. Retail investors are particularly active, with options volume for CRM increasing 40% over the last week, indicating heightened interest in potential upside from current levels.