Thursday, February 2, 2012

Oracle Corporation - ORCL

Oracle Corporation, stock ticker ORCL, is a future dividend aristocrat. No ifs, ands or buts about it. Even though they currently pay a 6 cent dividend, which is a 0.83% dividend, I strongly believe dividend increases will continue year after year. ORCL is always a great value play. Their shares sell for $28.87 and are on the up and up.

ORCL is an elite enterprise software company. They develop, manufacture, market, distribute and service database and middleware software, applications software and hardware systems, consisting primarily of computer server and storage products. There are three segments to ORCL: 1) Software 2) Hardware systems and 3) Services. Oracle's software business consists of new software licenses and software license updates and product support. Their hardware systems business consists of hardware systems products and hardware systems support. Their service business included consulting, Cloud Services and education. In January of 2011, Oracle completed the acquisition of Art Technology Group and in August of 2010 ORCL completed the acquisition of Phase Forward Incorporated (Phase Forward), a provider of applications for life sciences companies and healthcare providers.

Per Oracle's webpage, "With more than 380,000 customers—including 100 of the Fortune 100—and with deployments across a wide variety of industries in more than 145 countries around the globe, Oracle offers an optimized and fully integrated stack of business hardware and software systems." Sounds good to me!

Here are some stats about ORCL which are pleasing to the eyes:
52 week trading range $24.72 - $36.50
Mkt cap 144.79B (cash cow!)
P/E 15.85
Div/yield $0.06/share/0.83%
EPS 1.82
Beta 1.10
Inst. own 63% (nice to see)

ORCL is a high quality company with a strong competitive position. Their shares were beat down last quarter because of minor disappointing results. Long term, Oracle has consistently demonstrated their ability to provide great engineered and stable tools needed to build IT infrastructure or support business backroom operations. Oracle has demonstrated year over year their ability to execute against their very aggressive plans. The silliest reason to sell a stock is because of earnings missing analyst expectations. ORCL is an outstanding company trading at a reasonable valuation. This stock will definitely outperform in the long run.

Keep ORCL in mind if you want to invest in a future dividend beast, but are willing to wait a few years. If you have years to wait then you are in a great position to reap the benefits of a steady company on the rise. Check out the videos below and visit Oracle's Investor Relation website, here. I hope you have a great weekend!

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