Oracle Just Raised Its Dividend for a 12th Straight Year to $2 a Share, Even as AI Spending Pressures Free Cash Flow. Is Larry Ellison's Payout Still Safe?
Oracle's dividend looks safe today, but its future may depend on whether its massive AI bets pay off.
Overview
If you own shares of Oracle (NYSE: ORCL) and watch Chief Technology Officer Larry Ellison collect a $579 million dividend check each quarter, it would be natural for you to wonder if the company can really keep those payouts intact while it's burning through cash to build new AI data centers.
The short answer is that the dividend looks reasonably safe today, but its longer-term viability is now tied directly to how well Oracle's massive AI bet plays out over the next few years.
Larry Ellison, CTO of Oracle. Image source: Oracle Corporation.
Details
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Originally published at www.fool.com.
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