The Fiscal Cliff Makes Oracle Rush Out Its Dividends

Larry Ellison

Photo: AP

SAN FRANCISCO (Reuters) – Oracle Corp said it would accelerate payment of three quarters of dividends, joining a number of companies doing the same because of uncertainty about the U.S. government’s fiscal plans.About $600 billion of automatic tax increases and spending cuts are scheduled to come into effect in the United States early next year, which could include higher rates for dividends. So some companies, including Costco and Wal-Mart, have either moved up scheduled payments or declared special dividends.

Oracle declared accelerated second-, third- and fourth-quarter cash dividends totaling 18 cents per share of outstanding common stock.

CEO Larry Ellison, Oracle’s largest shareholder, did not participate in discussions or vote on the matter, Oracle said in a statement on Monday.

The accelerated dividend will be paid to stockholders of record as of close of business on December 14, with a payment date of December 21, 2012.

Shares of Oracle slipped 0.40 per cent in after hours trade after closing up 0.42 per cent at $32.31.

(Reporting by Noel Randewich; Editing by Leslie Gevirtz)

Copyright (2012) Thomson Reuters. Click for restrictions

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