– Oracle (NSDQ: ORCL) announced that it will issue its first dividend in May. Investors can look forward to receiving five cents a share on a quarterly basis–an indicated yield of 1.1 percent. The payout will cost the company almost $1 billion, small potatoes for a firm that generates $8 billion in cash each year and currently has more than $8 billion in cash on hand. The move is a sign of confidence in a weak economic environment, particularly as many other companies have slashed or altogether eliminated payouts.

– On April 1 the federal tax on a pack of cigarettes jumped from 39 cents to $1.01. Other tobacco products such as cigars, chewing and pipe tobacco will see tax increases of as much as 40 cents. Public health advocates hope that higher tax rates will discourage smoking, and the revenues will help fund the State Children’s Health Insurance Program. Anticipating reduced revenues as smokers quit rather than pay more, Lorillard (NYSE: LO) raised prices on its brands by 71 cents. Given the timing of the two increases, expect weaker second-quarter results.

– The city of Virginia Beach inked a deal to purchase a 10.6 mile right of way from Norfolk Southern (NYSE: NSC) where the city hopes to build a light rail line. Norfolk Southern has also entered into a joint venture with Pan Am Railways to improve freight rail service in the Patriot Corridor, which covers much of New England. The deal, which cost the company $137.5 million, will increase track and yard capacity in the region, improve freight rail service and give Norfolk Southern a much larger presence in the region.

– Paychex (NSDQ: PAYX) reported that net income declined eight percent in the third quarter even though total sales dropped off only one percent to $528.6 million. Its core payroll services revenue actually posted a two percent increase, accounting for 72 percent of total revenue. The main drag on top-line revenue was a 56 percent decline in float interest. Even with earnings slightly off, the company’s payout ratio remains just 76 percent, leaving its 34 cent quarterly dividend well covered by cash flows.