Understanding Oracle Corp's Dividend Dynamics
Oracle Corp(ORCL, Financial) recently announced a dividend of $0.4 per share, payable on 2024-04-24, with the ex-dividend date set for 2024-04-09. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Oracle Corp's dividend performance and assess its sustainability.
What Does Oracle Corp Do?
Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.
A Glimpse at Oracle Corp's Dividend History
Oracle Corp has maintained a consistent dividend payment record since 2009, distributing dividends on a quarterly basis. Oracle Corp has increased its dividend each year since 2009, earning it the status of a dividend achiever, a title reserved for companies with at least 15 consecutive years of dividend increases. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Oracle Corp's Dividend Yield and Growth
As of today, Oracle Corp currently has a 12-month trailing dividend yield of 1.28% and a 12-month forward dividend yield of 1.28%, indicating expectations of consistent dividend payments in the upcoming year. Over the past three years, Oracle Corp's annual dividend growth rate was 12.30%, which increased to 13.30% per year over a five-year span. Over the past decade, the annual dividends per share growth rate stands at an impressive 14.40%.
Based on Oracle Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Oracle Corp stock as of today is approximately 2.39%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-02-29, Oracle Corp's dividend payout ratio is 0.31.
Oracle Corp's profitability rank, which stands at 9 out of 10 as of 2024-02-29, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Oracle Corp's growth rank of 9 out of 10 suggests a strong growth trajectory relative to competitors. Oracle Corp's revenue per share and 3-year revenue growth rate indicate a robust revenue model, with a 15.00% average annual increase that outperforms approximately 65.08% of global competitors.
The company's 3-year EPS growth rate shows an average annual increase of approximately 2.90%, outperforming about 38.85% of global competitors. Furthermore, the 5-year EBITDA growth rate of 24.10% outperforms approximately 73.83% of global competitors, indicating strong earnings before interest, taxes, depreciation, and amortization growth.
Concluding Thoughts on Oracle Corp's Dividend Profile
Oracle Corp's consistent dividend growth, moderate payout ratio, strong profitability, and positive growth metrics paint a picture of a company with a robust dividend profile. For value investors seeking stable and growing income streams, Oracle Corp represents a compelling option. The company's ability to maintain and grow its dividends is underpinned by its financial health and market position. As Oracle Corp continues to innovate and adapt in a dynamic technological landscape, its dividend policy will likely remain a key attraction for investors. For those looking to expand their portfolio with high-dividend-yielding stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
