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The Birth Of A New Dividend Stock: Oracle (ORCL)

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March 21, 2009 – Comments (2) | RELATED TICKERS: APD , FNET.DL , ORCL

It is a powerful statement when others are hoarding cash that a company has the confidence to declare its first dividend to eliminate excess cash. Oracle (ORCL) did just that on Wednesday when it reported third-quarter EPS of $0.35/share, $0.03/share better than the analyst estimate of $0.32/share, and it declared its first ever dividend of $0.05/share. The dividend yield is 1.15%. ORCL is a leading supplier of enterprise database management systems and business applications.

Another company looking to give cash back to their shareholders is FortuNet (FNET). On Tuesday, FNET announced that shareholders will vote at its 2009 annual meeting on April 17, 2009 on a special $2.50/share cash dividend that was approved by the Board of the Company. FNET is a manufacturer of multi-game and multi-player server-based gaming platforms.

One Dividend Aristocrat chose to raise its dividend in a more traditional manner. Thursday, Air Products and Chemicals Inc. (APD) announced a 2.2%  increase its quarterly dividend to $0.45/share payable on May 11, 2009 to shareholders of record at the close of business on April 1, 2009. The new dividend yield is 3.17%.  APD is a major producer of industrial gases and specialty and intermediate chemicals also has interests in environmental and energy-related businesses.

Other than the above, it was a slow week for dividend increases. Unfortunately, the dividend slashers were still out in full force. Times like these separate the pretenders from the contenders. For more companies around the world with a long string of consecutive dividend increases, see my updated Stock Ideas page. There were a lot of companies crossed off last week.

Full Disclosure: No position in any of the aforementioned securities.

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4. Pre-Screening Dividend Stocks - Part II

5. My Unique Investing Process

Tags: APD, FNET, ORCL

 

2 Comments – Post Your Own

#1) On March 21, 2009 at 11:15 AM, SkinneeJ (27.84) wrote:

Issuing a dividend seemed to boost MSFT over the past several years...  Oh wait...  Not really...  This is what happens when your growth story runs out.

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#2) On March 21, 2009 at 12:02 PM, KamranatUCLA (29.72) wrote:

Oracle is in trouble.

How do I know that? not from balance sheets and income statement, those can all be cooked.

Oracle is in trouble because of what Oracle CEO is doing.

He bought over 200 homes in Malibu and Malibu Colony anywhere from 10 million- 40 million dollars. And he has 14 commercial buildings in Malibu.

This shows me that he is a crook. He is taking investors' stock money to pile himself a good amount of wealth. The money that we pay to buy stocks should go back into business not to finance this idiot's houses in Malibu.

His idiot wife recently bought a 120,000 matress...not a bed..no no  just a matress, the one that king and queen of Sweden have. It's made of horse hair and crap. They lay off workers and the wife buys a $120,000 matress...hmmmm let me think...where did that money come from??!!

The CEO is not a genuis...it's the hard work of underpaid engineers and technicians that havemade Oracle what it is now...the CEO is a crook and that's why sooner or later this stock will crash.

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