Oracle Stock Pays Dividends – Good for Investors and Employees ... by Chad Kidder

In our current state of global economic uncertainty and volatility, investors have a wide range of choices as declining stock values offer bargain investments. Savvy investors, however have to hedge their bets against an economic decline that has not stopped.

In May 2009 Oracle will pay out its first dividend of 5 cents per share to investors on its books as of April 8. With Oracle continuing to beat Wall Street forecasts, dividend payments increase Oracle’s attractiveness to potential investors as well as current shareholders who may be concerned about holding individual stocks.

The dividend payments help to mitigate some of the risk investors are under with the very real possibility of increased inflation and interest rates. If the market continues to decline, Oracle stock becomes an even more attractive investment as buyers seek out dividends to offset losses in other stocks. If the market begins to improve, Oracle stock will also improve with market conditions. If inflation becomes a significant factor, Oracle should see an increase in earnings and revenue, thus driving dividend payments even higher. Regardless of current market conditions, Oracle is positioned in favor of the shareholders. S&P rates Oracle as a “Buy” stock.

As Oracle Co-President Safra A. Catz said "We are committed to delivering value to our stockholders through technology innovation, strategic acquisitions [in recent years, Oracle bought PeopleSoft, Siebel Systems, Hyperion Solutions and BEA Systems], stock repurchases and now through a dividend." She added that Oracle had generated $8 billion in free cash flow over the past 12 months, up 14% from the level a year ago. http://online.barrons.com/article/SB123758869074699969.html

This level of cash flow and stability is also very appealing to a market reeling from multi-sector losses and leery of investing in higher-risk stocks.

Oracle’s cash position, deep market penetration, and innovative strategies have positioned its stock as one of the bright spots in today’s troubled market. Investors, shareholders, and employees (many of whom are one and the same) are taking note and further strengthening the company’s financial standing by purchasing this already affordable stock. From a current and prospective employee’s standpoint, the company’s stability further cements its reputation as a capable and growing organization.

The author of this article is part of the Oracle North AmericaTeam and can be contacted at chad.kidder@oracle.com

Comments:

Mr. Larry Ellison and Oracle Management surprises the market form its decision and performance some of the industry expertise criticized Mr. Larry Ellison aggressive take over of the IT companies with similar product line what oracle offering, with this quarterly result Mr. Larry Ellison proved is decision are right and he is the performer and intelligent Entrepreneur, definitely no doubt Oracle will beat SAP and Microsoft to become No 1 Software Product company in near future

Posted by Jagadeesh Sajjan on April 01, 2009 at 07:57 AM CST #

Right. So we should take Standard & Poor's recommendations? Remember, these are the guys that found nothing remarkable to say about the activities on Wall Street that led to the present crisis. Please! Cred zero. Its time we stopped listening to companies like S&P anyway. They definitely don't have our best interests at heart but instead subscribe fully to "Greed is Good". Wrong morally, wrong for the economy, and wrong for humanity.

Posted by Demos on April 04, 2009 at 03:09 AM CST #

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Posted by Sarah on April 04, 2009 at 05:59 PM CST #

Unfortunately I find that the content doesn't change frequently enough to maintain a connection with the reader - or maintain interest.

Posted by LILY on May 15, 2010 at 01:38 PM CST #

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