Here’s Clearbridge Dividend Strategy’s Comment on Oracle (ORCL)

ClearBridge Investments, an investment management company, released its “ClearBridge Dividend Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was unexpectedly positive for U.S. equity investors, despite global trade wars, conflicts in Ukraine and the Middle East, falling earnings estimates, and a worsening fiscal situation outlook, with the S&P 500 Index up 6.2% at the year’s halfway mark. While the strategy that focuses on quality, risk management, and a disciplined approach to valuation lagged in this momentum-driven environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Dividend Strategy highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was 32.95%, and its shares gained 65.06% of their value over the last 52 weeks. On July 8, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $234.50 per share, with a market capitalization of $658.671 billion.

ClearBridge Dividend Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

“Of course, what makes the ClearBridge Dividend Strategy unique is that we do not just invest in dividend stalwarts in communications services, energy, health care and consumer staples. Our flexible approach to dividends enables us to invest in stocks with lower upfront yields, provided they offer compelling risk/rewards and the companies can significantly grow their dividends. This is how we got to own Broadcom and Oracle Corporation (NYSE:ORCL), two of the best AI plays around, (in addition to Apple, Microsoft, Visa and others). But, unlike today, we built our positions in Broadcom and Oracle when their stocks embedded weak outlooks, not meteoric expectations (Exhibit 2).

We bought Oracle in September 2020 when it was trading 14x earnings and investors were sour on the name. It has likewise performed well. We have taken gains along the way but still hold a large, but measured position, of 2.2%. We would be better off had we not trimmed our holdings, but investing requires making decisions probabilistically, without perfect knowledge of how the future will unfold.”

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Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, compared to 105 in the previous quarter. While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of top AI Stocks in the spotlight. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.