Dividend Overview
Dividend Yield
0.94%
Dividend / Share
$1.65
Oracle Corp
Exchange: NYSESector: TechnologyIndustry: Software - Infrastructure
Oracle's distributed cloud delivers the benefits of cloud with greater control and flexibility. Oracle's distributed cloud lineup includes: Public cloud: Hyperscale public cloud regions serve any size of organization, including those requiring strict EU sovereignty controls. See the full list of regions here. Dedicated cloud: Customers can run all OCI cloud services in their own data centers with OCI Dedicated Region, while partners can resell OCI cloud services and customize the experience using Oracle Alloy. Oracle also operates separate US, UK, and Australian Government Clouds, and Isolated Cloud Regions for national security purposes. Each of these products provides a full cloud and AI stack that customers can deploy as a Sovereign Cloud. Hybrid cloud: OCI delivers key cloud services on-premises via Oracle Exadata Cloud@Customer and is already managing deployments in over 60 countries. Multicloud: OCI is physically deployed within all the cloud providers, including AWS, Google Cloud, and Microsoft Azure, providing low latency, natively integrated Oracle AI Database services, including Oracle AI Database@AWS, Oracle AI Database@Azure, Oracle AI Database@Google Cloud; and Oracle HeatWave on AWS and Microsoft Azure. In addition, Oracle Interconnect for Microsoft Azure, Oracle Interconnect for Google Cloud, and the upcoming connection between OCI and AWS Interconnect–multicloud allow customers to seamlessly combine key capabilities from across clouds. About Oracle Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud.
Did you know?
Pays a 0.94% dividend yield.
Current Price
$176.28
-5.98%GoodMoat Value
$102.40
41.9% overvaluedProfile
Valuation (TTM)
Market Cap$506.48B
P/E31.29
EV$557.42B
P/B24.77
Shares Out2.87B
P/Sales7.90
Revenue$64.08B
EV/EBITDA20.26
Oracle Corp (ORCL) Dividends
GoodMoat Analysis
Oracle's dividend profile is unfavourable for an income-focused value investor. The dividend yield is low relative to the sector, and critically, the company's negative free cash flow yield indicates the current payout is not supported by underlying cash generation. The high debt load further constrains financial flexibility.
Read full analysis
Oracle's dividend yield of 1.13% is below the broader technology sector average, making it a weak source of current income. While the company has grown its dividend historically, its ability to sustain and increase the payout is now under significant pressure. According to the GoodMoat Investment Framework's Quality Indicators, two critical metrics are flashing warning signs. First, the Free Cash Flow (FCF) Yield is negative at -0.1%, meaning the company is not generating the surplus cash needed to fund the dividend organically. A sustainable dividend requires a positive and growing FCF conversion, which is absent here. Second, the balance sheet is a major concern, with a Debt/Equity ratio of 5.09, far exceeding the framework's favourable threshold of less than 1.0x Debt/EBITDA. This high leverage limits financial flexibility and increases risk, especially as interest rates remain elevated. The payout ratio based on earnings may appear manageable, but earnings are a poor metric for dividend sustainability compared to cash flow. For an income investor, the combination of a low yield, unsupportive cash flow, and a leveraged balance sheet creates an unfavourable profile. Capital is being heavily reinvested into capital expenditures, likely for cloud infrastructure, rather than being returned to shareholders. Analysis based on data as of 2024-07-21.
Key Metrics
Market Cap
$506.48B
P/E Ratio
31.29
Forward P/E
—
EPS
$4.34
PEG Ratio
1.37
Book Value
$7.12
Dividend Yield
0.94%
Profit Margin
25.30%
ROE
79.26%
Dividend History
Dividend Safety
ORCL Dividend Analysis
Oracle Corp (ORCL) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 0.94%. The annual dividend per share is $1.65.
P/E ratio: 31.29. Profit margin: 25.30%. Free cash flow: $-394.00M. This page shows Oracle Corp's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.
GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported Oracle Corp's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.