Oracle (ORCL) DIvidends Date & History

Key Takeaways

• Oracle pays a quarterly dividend of $0.50 per share, for an annual total of $2.00 and a yield of approximately 1.4%.
• The company has raised its dividend for 12 consecutive years, reflecting a commitment to dividend growth.
• Payout ratio stands at around 34%, indicating strong earnings coverage and sustainability.
• Free cash flow has been pressured by cloud investments, yet operating cash flow remains robust.
• Yield is comparable to peers like Cisco but lower than SAP, positioning Oracle as a growth-oriented dividend stock.
• Low payout and consistent increases make it appealing for long-term dividend growth investors.

Dividend Overview

Oracle Corporation maintains a quarterly dividend policy, distributing $0.50 per share four times annually. This results in an annualized dividend of $2.00 and a current yield near 1.4%. The modest yield classifies Oracle as a dividend growth stock rather than a high-yield income vehicle. Payments occur on a consistent schedule, with the most recent ex-dividend date set for July 10, 2026, and payment on July 24, 2026. The policy aligns with the company’s focus on returning capital while prioritizing investments in cloud infrastructure and artificial intelligence initiatives.

Dividend History and Growth

Oracle initiated dividends more than a decade ago and has increased the payout annually for 12 straight years. Recent growth includes an 11.11% rise over the past year. The company has maintained payment consistency without cuts, supported by expanding earnings from its software and cloud segments. Long-term strategy emphasizes gradual dividend growth alongside share repurchases and reinvestment in high-growth areas like cloud services.

Dividend Sustainability and Payout Ratio

The payout ratio of approximately 34% demonstrates ample earnings coverage, leaving significant room for future increases or reinvestment. Strong operating cash flow of $32.0 billion in fiscal 2026 provides a solid foundation, though free cash flow turned negative due to heavy capital expenditures on cloud expansion. Debt levels have risen modestly, yet the low payout ratio and healthy margins support dividend sustainability for the foreseeable future. Investors should monitor cash flow trends as investments mature.

Dividend Compared to Industry Peers

Within the technology sector, Oracle’s 1.4% yield aligns closely with Cisco Systems (around 1.4%) but trails SAP (near 1.8%). Microsoft offers a lower yield of about 0.9%. Oracle stands out for its faster recent dividend growth rate compared to many peers, while maintaining a conservative payout ratio. This profile appeals to investors seeking a balance between income and growth potential in the software and cloud industry.

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Is This Stock Attractive for Dividend Investors?

Oracle may suit dividend growth investors seeking consistent annual increases and a conservative payout ratio in the technology sector. The low yield limits appeal for pure income seekers prioritizing high current returns, yet the 12-year growth streak and earnings coverage provide stability for long-term holders. Conservative investors could find value in the company’s strong margins and cloud-driven expansion, provided they accept reinvestment priorities that occasionally pressure free cash flow. Overall, the profile fits portfolios focused on moderate income combined with capital appreciation potential over extended periods.

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