What to Make of Goldman’s Bullish Call

Muted growth could mean Goldman Sachs's year-end price target of 1,750 in the S&P 500 might be right, Joe Terranova of Virtus Investment Partners said Tuesday.

"I think it's an acknowledgement of the dividend growth that we saw in the first quarter," he said, adding that much of it came from the consumer discretionary and financial sectors. "I don't think it's on earnings growth. It's on dividend growth. I like the theme itself because it suggests muted growth and a way for companies to give back to shareholders."

Goldman Sachs issued new targets for the S&P 500 of 1,900 for 2014 and 2,100 for 2015.

(Read More: Goldman Sachs Upgrades S&P 500 Target)

On CNBC's "Fast Money," Terranova also cited Apple CEO Tim Cook's concurrent tax testimony before a Senate subcommittee.

Watching the live event, he added, "you begin to wonder if Apple doesn't get motivated to give back even more."

(Read More: Tim Cook: We Pay 'Every Single Dollar' in Taxes Owed)

Josh Brown of Fusion Analytics said that Goldman's thesis was interesting.

"It's a fascinating rationale," he said, casting the bullish call as one that sees multiples expanding in the year before you see GDP growth.

Brown also said that the S&P targets appeared to be an expectation that the dividend floor will continue to rise. "Right now it's about 2 percent on the S&P."

"I thought that was rather interesting," Brown added. "It's much better case than for them to try to say there's going to be earnings growth. We just don't have evidence of it yet."

Trader disclosure: On May 21, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS ; Joe Terranova is long SJM; Joe Terranova is long SPLK; Joe Terranova is long LNKD; Joe Terranova is long TBT; Joe Terranova is long SWN; Stephen Weiss has nothing to disclose; Josh Brown has nothing to disclose.