Software company, Oracle Corporation(
) reported on Tuesday that they will be paying a large portion of
their 2013 dividends this month, to avoid possible fiscal cliff tax
The company announced that they will be paying three quarters of
their 2013 dividends during the month of December, which were
previously going to be paid in January, April, and July.
Oracle is one of many companies paying their dividends ahead of
time in order to allow their investors to avoid the potential tax
increases due to begin on January 1. Dividends, which are currently
taxed at a rate of 15% could increase more than half, depending on
individual investors tax brackets.
A total of 18 cents per share will be paid this month, which
will have a significant benefit on the company's largest
shareholder, CEO, Larry Ellison, who owns 1.1 billion shares of
ORCL, totaling $198.9 million in dividend payments this month.
Although the company reported that Ellison had no influence on the
decision to move up dividends, he, as well as other large
stakeholders will benefit the greatest from this acceleration.
Many investors hoped to see the company payout a special
dividend this month, but with the regular dividends moved up, and
no reports of any type of special dividend, it is highly
Oracle shares were down 16 cents, or -0.5% during premarket
trading Tuesday. The stock is up 25.96% YTD.
The Bottom Line
Shares of Oracle Corporation (
) have a .74% dividend yield, based on last night's closing stock
price of $32.31. The stock has technical support in the $28-$29
price area. If the shares can firm up, we see overhead resistance
around the $33-$35 price levels.
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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