10 Best Dividend Stocks Hedge Funds Are Buying

6. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 122

Number of Years of Dividend Payouts: 16

Oracle Corporation (NYSE:ORCL) is one of the best dividend stocks to buy according to hedge funds. On November 18, Baird maintained an Outperform rating on ORCL but slashed the target price from $365 to $315. The firm altered its bullish sentiment after observing Oracle’s debt and AI capacity.

Separately, a Financial Times report from November 28 states that Oracle, along with SoftBank and CoreWeave, has already amassed $30 billion in debt to invest in OpenAI’s data centres. Similarly, some banks are in conversation to loan an additional $38 billion to Oracle Corporation (NYSE:ORCL) and Vantage so they can construct further data centers for the AI startup. This deal is supposed to be completed in the next few weeks.

Another piece from the Financial Times, dated November 18, discussed Oracle Corporation (NYSE:ORCL)’s capacity to handle more debt. Oracle disclosed a $300 billion collaboration with OpenAI on September 10, and consequently, the stock has massively shed its market cap. The market theorizes that OpenAI aims to discover artificial general intelligence (AGI), and Oracle is in a position to provide it the computing power it requires at lower prices than competitors. Another way to see it is that Oracle, with less profit to spare than competitors, is dedicating maximum resources to its client in exchange for a repayment promise.

Oracle Corporation (NYSE:ORCL) is a Texas-based provider of software, cloud services, hardware, and IT solutions to companies, governments, and schools globally.