An In-depth Look into Oracle Corp's Dividend Performance and Sustainability
Oracle Corp (ORCL, Financial) recently announced a dividend of $0.4 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-11. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This article, using data from GuruFocus, delves into Oracle Corp's dividend performance and gauges its sustainability.
What Does Oracle Corp Do?
Oracle Corp provides database technology and enterprise resource planning (ERP) software to enterprises globally. Founded in 1977, Oracle Corp pioneered the first commercial SQL-based relational database management system. Today, it serves 430,000 customers in 175 countries, backed by its workforce of 136,000 employees.
A Glimpse at Oracle Corp's Dividend History
Since 2009, Oracle Corp has maintained a consistent dividend payment record, distributed quarterly. The company has increased its dividend each year since 2009, earning it the title of a dividend achiever, a recognition given to companies that have consistently increased their dividend for at least the past 14 years.
Breaking Down Oracle Corp's Dividend Yield and Growth
Currently, Oracle Corp boasts a 12-month trailing dividend yield of 1.31% and a 12-month forward dividend yield of 1.45%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, Oracle Corp's annual dividend growth rate was 12.30%. This rate escalated to 13.30% per year over a five-year period and an impressive 14.40% over the past decade. Consequently, the 5-year yield on cost of Oracle Corp stock stands at approximately 2.45% as of today.
The Sustainability Question: Payout Ratio and Profitability
Assessing Oracle Corp's dividend sustainability requires a look at its payout ratio. The dividend payout ratio reveals the proportion of earnings the company distributes as dividends. A lower ratio implies that the company retains a significant portion of its earnings, ensuring funds for future growth and potential downturns. As of 2023-08-31, Oracle Corp's dividend payout ratio is 0.43.
Oracle Corp's profitability rank is 9 out of 10 as of 2023-08-31, indicating strong profitability prospects. The company has reported positive net income 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 promising growth trajectory compared to its competitors. Oracle Corp's revenue has increased by approximately 15.00% per year on average, a rate that outperforms approximately 65.28% of global competitors. During the past three years, Oracle Corp's earnings increased by approximately -0.10% per year on average, a rate that outperforms approximately 38.05% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 19.30% outperforms approximately 65.46% of global competitors.
Next Steps
Based on Oracle Corp's consistent dividend payments, impressive growth rate, sustainable payout ratio, high profitability, and robust growth metrics, it is a promising prospect for investors seeking steady dividend income. However, as with all investments, it's crucial to conduct thorough research and consider all factors before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
