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Oracle (NYSE:ORCL) declares dividend of $0.40

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Oracle Corporation (NYSE:ORCL) will be paying investors a dividend of $0.40 per share on July 25, resulting in a 1.1% dividend yield, which is higher than the industry average. The company’s earnings easily cover this distribution, indicating sustainability. With a forecasted 81.7% growth in EPS over the next year, the payout ratio is estimated to be at a comfortable 26%. Oracle has a strong track record of stable dividends, showing a compound annual growth rate of about 13% since 2014.

Although earnings have been growing at a modest rate of 4.5% per year, the company has been paying out a large portion to shareholders. This may make it challenging for Oracle to increase its dividend unless earnings growth accelerates. Overall, the company looks like a solid dividend stock with steady payouts and sufficient earnings to cover them.

Investors typically prefer companies with consistent dividend policies, and Oracle seems to meet these criteria. However, it is essential to consider other aspects of stock performance. For instance, there is a warning sign for Oracle that investors should be aware of before investing. For those seeking high-yield dividend opportunities, exploring a collection of strong dividend payers may be beneficial.

Valuing Oracle can be complex, but thorough analysis can help simplify the process. Understanding if the stock is potentially overvalued or undervalued involves assessing factors such as fair value estimates, risks, dividends, insider transactions, and financial health. This information is crucial for making informed investment decisions.

As a general reminder, the article provides commentary based on historical data and analyst forecasts, using an unbiased approach. It is not intended as financial advice and does not consider individual objectives or financial situations. The goal is to offer long-term analysis based on fundamental data.

Lastly, it is important to note that the analysis may not include the most recent company announcements or qualitative factors. Simply Wall St does not hold positions in the mentioned stocks and aims to provide comprehensive analysis for investor understanding. For further inquiries or concerns about the content, readers are encouraged to contact the editorial team directly.

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https://simplywall.st/stocks/us/software/nyse-orcl/oracle/news/oracle-nyseorcl-has-announced-a-dividend-of-040/amp

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