The board of Oracle Corporation (NYSE: ORCL) has announced that it will pay a dividend on July 25, with investors receiving $0.40 per share. This implies a dividend yield of 1.1%, which will significantly increase investors’ returns. Oracle Payments has strong earnings coverage, with the company comfortably earning enough to cover the dividend, indicating reinvestment for growth. Looking ahead, earnings per share are expected to rise by 81.7% over the next year, and the payout ratio could be 26% next year, in a sustainable range.
Oracle has a strong track record of stable dividend distributions over many years. The annual payment back in 2014 was $0.48, compared to the most recent annual payment of $1.60, showing a 13% annual increase. However, dividend growth prospects are limited, with earnings per share growing at a rate of 4.5% per year, which might explain the higher proportion of earnings being paid out.
In summary, Oracle’s dividend remains consistent and sustainable, with distributions covered by earnings and cash flows. While dividend payments are important, investors should also consider other factors when evaluating a company. One warning sign for Oracle to keep in mind is identified, but overall, it has solid potential as a dividend stock.
Investors generally prefer companies with a stable dividend policy, and Oracle fits the bill. While dividend payments are one aspect to consider, it is not the only factor in evaluating a company. For more high-yield dividend ideas, readers can explore a collection of strong dividend payers.
The article provides commentary based on historical data and analyst forecasts, with an unbiased methodology. It is not financial advice and does not constitute a recommendation to buy or sell shares. The goal is to provide long-term focused analysis based on fundamental data. It is important to note that the analysis may not include the latest company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.
If there are any comments or concerns about the article, readers can reach out directly or contact the editorial team via email.
Article Source
https://finance.yahoo.com/news/oracle-nyse-orcl-announced-dividend-130512583.html
