10 Best Affordable Dividend Stocks to Buy According to Hedge Funds

3. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 104

Forward P/E Ratio as of February 26: 24.04

Oracle Corporation (NYSE:ORCL) is an American software company, based in Texas. The company is well known for its cutting-edge data center infrastructure, which is essential for AI development. Demand for its services currently exceeds supply, as it continues to be a key partner for major AI firms such as OpenAI, Cohere, and Elon Musk’s xAI. While the company operates efficiently, it is still striving to keep pace with rising demand. As of fiscal Q1 2025, Oracle had 162 data centers either operational or under construction. To address this shortage, the company has ambitious expansion plans, aiming to grow its data center network to between 1,000 and 2,000 in the future. In the past 12 months, the stock has surged by over 55%.

Oracle Corporation (NYSE:ORCL) posted solid financial results for fiscal Q2 2025, with revenue reaching $14.06 billion, marking a 9% year-over-year increase. Its cloud services segment, which includes Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS), brought in $5.9 billion, reflecting a 24% increase in both USD and constant currency. Cloud infrastructure revenue (IaaS) saw particularly strong growth, surging 52% to $2.4 billion. At this pace, Oracle’s cloud revenue is projected to surpass $25 billion for the fiscal year.

Oracle Corporation (NYSE:ORCL) has also gained investor interest due to its consistent dividend payments. It currently offers a quarterly dividend of $0.40 per share and has a dividend yield of 0.93%, as of February 26. The company has been distributing dividends since 2009 and has increased payouts at an average annual rate of nearly 11% over the past five years, which makes it one of the best dividend stocks on our list.