Oracle Stock Pays Dividends – Good for Investors and Employees ... by Chad Kidder
By User769227-Oracle on Apr 01, 2009
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 firstname.lastname@example.org