Oracle Corporation (NYSE:ORCL) is living up to its promise of returning value to shareholder having increased its dividend payment by 25% to 15 cents per common share. The dividend hike will allow the company to return an additional $132 million to shareholders this quarter. Hewlett-Packard Company (NYSE:HPQ) has also increased its dividend offering by 10% to 17.6 cents a share from 16 cents a share the prior quarter.
Wall Street reacted positively to Oracle Corporation (NYSE:ORCL)’s dividend hike as the stock was up by 4% on the news as the switch to cloud-based software offerings heats top gears. The dividend hike, however, comes as a surprise as the company failed to beat earnings estimates of $9.5 billion in revenues in the last quarter having posted revenues of $9.3 billion. Combined sales for Oracle Corporation (NYSE:ORCL)’s three cloud businesses was however up by 29%.
Oracle Corporation (NYSE:ORCL) is currently transitioning from being a software licensing company to a subscription cloud software and services company as the race to address the needs of companies making a push for the cloud business heats up. Chief technology officer, Larry Ellison has already aired his confidence that the company remains’ well positioned to attract more new businesses partners than Salesforce.com, Inc. (NYSE:CRM) going forward.
Hewlett-Packard Company (NYSE:HPQ) dividend hike marks a fifth consecutive quarter of an annual increase that brings the payout ratio to 19.3%. The PC and Printer maker is in the process of splitting itself into two with the first business being made of PC and Printer operations. HP enterprise is to be the second business made of software and services operations.
Hewlett-Packard Company (NYSE:HPQ) shares are down by 17% this year having failed to meet earnings estimates in the previous quarter and consequently providing a full year guidance that fell below the Street estimates.