This Blue Chip AI Stock Offers A Reliable Growing Dividend

Oracle Corp ORCL, a dividend-paying blue chip stock, is making significant gains from the AI frenzy. The stock has risen more than 7% in the past week following news that Elon Musk’s AI venture xAI is about to invest $10 billion in Oracle servers.

The deal, which is in the late-stage negotiating phase, could make xAI one of Oracle’s biggest clients. Oracle has also secured a contract with data analytics company Palantir Technologies Inc. PLTR to provide AI solutions to corporations and governments. This partnership is expected to boost Oracle’s position in the cloud computing business.

In March 2024, Oracle CEO Safra Catz said they expected a surge in large contracts reserving cloud infrastructure capacity, as demand for their Gen2AI infrastructure exceeded supply.

Oracle’s fundamentals indicate financial stability and potential for rapid growth. The company has a history of rewarding investors through dividend payments, having paid a stable and increasing dividend for the last 15 years.

The current 12-month trailing dividend yield is 1.30%, and the forward dividend yield is 1.41%. Oracle has maintained an annual dividend growth rate of 13.30% over the last five years.

With a sustainable payout ratio of 41.07%, the stock shows a good balance between investing for growth and rewarding shareholders. Oracle could be a good investment for those seeking fast growth potential and consistent dividends in the AI industry.

Are You Missing The Chance For Even Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Debt Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.