Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Today's Featured Story The Time to Buy ServiceNow Is Now: Oversold and Ready for a ReboundBy Thomas Hughes. Posted: 1/31/2026. 
Quick Look - ServiceNow looks set up for a 2026 rebound and may just need one clear catalyst to bring retail buyers back.
- Institutions are buying into the pullback in early 2026, treating it as a value-driven entry point.
- Cash flow and growth execution support the outlook, with recent equity gains reinforcing the longer-term case.
Valuation concerns capped ServiceNow (NYSE: NOW) price action in 2025, creating a correction and a buying opportunity that is unfolding in 2026. The Q4 release reaffirmed the company's strengths, its longer-term outlook and the increasing value embedded in the business. Trading at roughly 30x current earnings but nearer 15x when measured against the 2030 outlook, the stock appears positioned for a solid double-digit to triple-digit price advance over the coming years. Institutional activity is another signal highlighting the early-2026 opportunity. Institutions were net sellers in Q4 2025—harvesting losses for tax purposes—but were net buyers for the full year and accelerated purchases in early 2026. Buying in January topped $6 billion, or roughly 4% of market cap, and that activity is likely to remain strong given the emerging value case. The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. Highlights from the Q4 release include a $5 billion increase to the buyback authorization, with repurchases focused on offsetting dilution. While ServiceNow does not pay dividends and historically hasn't been hyper-aggressive with buybacks, it has been investing heavily in growth and delivered a 35% equity gain for investors in 2025. The year-end balance sheet positions the company well to continue executing its strategy, and the 2026 outlook points toward another double-digit year for equity returns. Generative AI Drives Q4 Strength for ServiceNow ServiceNow posted a solid quarter, with revenue rising more than 20% to over $3.5 billion. Subscription revenue grew 21% year-over-year, fueled by adoption of agentic and generative AI tools and continued customer additions. The Now Assist generative AI tool has become a growth pillar, with usage more than doubling year-over-year, and net new contracts over $1 million increased by 40%. Margin dynamics were also favorable despite the market's reaction. The company delivered margin strength driven by revenue leverage and operational execution, leaving adjusted earnings ahead of expectations. Adjusted EPS of $0.92 beat the MarketBeat-tracked consensus by $0.03, supported by a robust 2026 outlook. Guidance anticipates revenue growth slowing to the low-20% to high-teens range—still well above consensus—and management appears cautious given the rise in remaining performance obligations (RPO). Current RPO (cRPO) increased 25% while total RPO rose 26.5%, which could enable further acceleration in 2026. ServiceNow Stock Overextends, Diverges From Indicators ServiceNow's share price fell more than 10% after the Q4 release and the guidance update and could remain under pressure in the near term. However, technical indicators such as the stochastic oscillator and MACD show meaningful divergences, suggesting the sell-off may have overshot fundamentals and opening the possibility of a strong rebound. In that scenario, the stock could find a bottom in early 2026 and set up for a recovery later in the year. The December stock split is also influencing price action. Splits often give investors an opportunity to trim positions, which can add temporary downward pressure. Importantly, companies that initiate splits typically do so after a period of substantial price appreciation; historically, many of those companies have continued to trend higher over the long term because the splits follow solid business performance, healthy cash flow and ongoing capital returns. Given those dynamics, current selling pressure on ServiceNow shares may transition to more accumulation-focused demand. The catalyst for a rebound will likely be upcoming quarterly results. Sustained operational strength could prompt analysts to adopt a more bullish stance and draw retail investors back into the market. For now, some analysts have trimmed price targets for this Moderate Buy-rated stock, moving them toward the low end of the range—where the stock is currently trading—and those lower targets are effectively providing a floor near critical support levels. 
| 
