Dividend Increase: Oracle (ORCL) 2017

Oracle’s 2017 dividend increase is $0.04 per share per quarter.  This brings the quarterly dividend to $0.19 per share, up from the prior $0.15, representing a 26.67% dividend increase for shareholders.  This blows past my projection of a $0.02 increase.  The current dividend yield on ORCL sits at 1.72% based on the $44.31 closing price.

ORCL Dividend History:

The above represents the entire history of ORCL dividend.  Looking at the randomness of increases is a little puzzling.  The company can easily afford to grow it’s dividend around 10% per year, however increases kind of come in every other year almost.  Despite lacking the dividend growth streak, when the company does increase it’s dividend, it nicely rewards shareholders collecting passive income.  For the 9 year history of paying dividends, ORCL has on average increased it’s dividend 21.46%.  This is pretty impressive, considering there have only been 4 dividend increases.  This equates to the dividend income growing 280% in those 9 years.

ORCL vs S&P500:

What good is a growing dividend if you aren’t beating the markets?  Well, fortunately ORCL is handily beating the S&P500 over the last 10 years.

ORCL Key Stats:

Market Cap: 182.32 Billion

Dividend Yield: 1.72%

Payout Ratio: 28.44%

Total Cash: $59.35 Billion

Total Debt: $53.97 Billion

Profit Margin: 23.82%

PE Ratio: 1.11

Beta: 20.96

I remember the days of ORCL’s balance sheet containing no debt.  Over the last decade, the company has gone on a buying spree, gobbling up any competition.  That low payout ratio is a reason I feel like ORCL can grow it’s dividend by 10% for a while.  However, shareholders will just have to settle for the random increases.  I’d be curious to see if the tax laws are changed, how would ORCL bring foreign earnings back to the states and what would they do: clean up the debt or special dividend?

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