A quick review of ORCL in 2020
Oracle Corporation (NYSE:ORCL) is quickly becoming one of the biggest software companies in the world. Recently, the software company made waves after joining the growing list of tech companies to move their headquarters out of California to Austin, Texas in December 2020.
Oracle stock scored a record high of $66.20 on Dec. 23. And while the shares have pulled back since then, the $62 level --home to its previous peaks -- has so far contained the damage. Year-over-year, ORCL is up 19.4%, yet 14 of 22 brokerages in coverage maintain tepid "hold" ratings.
Oracle also has a forward dividend of $0.96 and a forward dividend yield of 1.51%. In the last quarter, Oracle paid its investors out $0.24 per share in dividends. Oracle has consistently paid dividends since 2009. ORCL's first dividend payment was for $0.05 per share.
Oracle stock has maintained a long-term bullish trend since the dot-com bubble, and it looks likely to continue its upward path, albeit at a slow and steady pace. The company holds a massive market cap value of $189.56 billion but trades at a modest 19.04 price-earnings ratio. What is even more impressive is Oracle stock’s forward price-earnings ratio of 14.95.
Oracle will likely yield some decent returns for investors holding the stock long-term and the company has more than quadrupled its dividend in just over a decade, which makes ORCL a very intriguing dividend bonus play as well.
Lastly, Oracle stock's short-term options are attractively priced. Specifically, the equity's Schaeffer's Volatility Index (SVI) of 24% is in just the 9th percentile of its annual range, suggesting near-term options are pricing in relatively low volatility expectations for ORCL.