Science Applications International (SAIC) DIvidends Date & History

Key Takeaways

• SAIC offers a modest annual dividend of $1.48 per share, yielding approximately 1.4% to 1.6%.
• The company pays dividends quarterly at a consistent $0.37 per share rate.
• A low payout ratio of around 19% to 20% indicates strong dividend sustainability.
• Earnings and free cash flow comfortably cover the dividend multiple times over.
• SAIC maintains a stable dividend policy with no recent increases or cuts.
• The stock appeals to income-focused investors seeking conservative, reliable payouts in the IT services sector.

Dividend Overview

Science Applications International Corporation (SAIC) follows a straightforward dividend policy centered on quarterly cash distributions. The company currently pays an annual dividend of $1.48 per share, split into four equal payments of $0.37 each. This results in a forward dividend yield of roughly 1.4% to 1.6%, depending on the prevailing stock price. SAIC is best characterized as a modest-yield dividend stock rather than a high-yield or aggressive dividend growth name. The board has signaled its intent to continue quarterly payments, subject to ongoing approval and financial conditions.

Dividend History and Growth

SAIC has maintained a steady quarterly dividend of $0.37 per share in recent years, with consistent payments across 2024, 2025, and into 2026. Historical records show no dividend cuts or significant increases during this period, reflecting a conservative approach focused on stability rather than rapid growth. The company initiated its current dividend program relatively recently compared to long-established dividend aristocrats, and it has not yet established a multi-year growth streak. Management emphasizes that future dividend amounts remain subject to board discretion based on earnings, cash flow, and capital needs.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable given SAIC’s low payout ratio of approximately 19% to 20%. This means the company distributes only a small portion of its earnings as dividends, leaving substantial room for reinvestment or unexpected challenges. Earnings coverage is strong, with the payout well supported by reported profits. Free cash flow also provides ample coverage, and the company maintains a solid balance sheet with manageable debt levels typical of the government services sector. Overall financial stability supports the likelihood of continued payments without strain.

Dividend Compared to Industry Peers

Within the IT services and government contracting sector, SAIC’s dividend yield sits toward the lower end compared with some peers. Companies such as CACI International and Leidos Holdings often feature similar or modestly higher yields, while others in broader technology services may offer elevated payouts. SAIC’s profile stands out for its exceptionally low payout ratio and conservative stance, prioritizing financial flexibility over higher shareholder distributions. This positions it as a more defensive choice relative to higher-yielding names in the industry.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore opportunities with the AI Screener.

Is This Stock Attractive for Dividend Investors?

SAIC may suit conservative dividend investors who prioritize sustainability and low payout ratios over high yields or rapid growth. Income-oriented investors seeking reliable quarterly cash flow in the government IT services space could find it appealing, particularly those with longer time horizons who value financial stability. Dividend growth investors might view the lack of recent increases as a limitation, while those focused on total return could appreciate the combination of modest income and potential capital appreciation. The stock does not align with high-yield seekers or those pursuing aggressive dividend growth strategies. Investors should evaluate SAIC alongside their overall portfolio allocation and risk tolerance.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations