Oracle Corp.'s (ORCL) board will pay dividends for the next three quarters early, joining a list of companies that are giving payouts ahead of a possible dividend-tax increase in the new year.
The software company will shell out a total of 18 cents a share Dec. 21.
Oracle typically pays a quarterly dividend of six cents a share and was scheduled to pay its next one in February.
The accelerated payment, for the second, third and fourth quarters of fiscal 2013, will cost the company about $867.4 million. As of Sept. 17, the company had over 4.82 billion shares outstanding.
Oracle's chief executive and largest stockholder, Lawrence J. Ellison, didn't participate in the deliberation or the vote on this matter, the company said.
Mr. Ellison holds 1.1 billion Oracle shares and would be in line for a dividend of $198.9 million.
A slew of companies have chosen to give one-time dividends or pull their regular payouts into the current year to avert a dividend tax increase that either the so-called fiscal cliff or a deal among policy makers could bring.
A representative for Oracle couldn't be reached for comment on whether the acceleration was due to the impending tax changes.
In September, the company said its quarterly profit increased 11%, but weaker sales fed concerns of a broader slowdown in technology spending and of Oracle not keeping pace with industry shifts.
Shares were down 0.8% at $32.04 in after-hours trading. The stock was up 26% since the beginning of the year as of Monday's close.
source: foxbusiness.com
