Service (SCI) DIvidends Date & History

Key Takeaways

• Service Corporation International (SCI) pays a quarterly dividend of $0.34 per share, equating to an annual payout of $1.36 and a current yield of 1.55%.
• The company has raised its dividend for 15 consecutive years, with recent annual totals growing from $1.12 in 2023 to $1.36 in 2026.
• A low payout ratio of 34.21% indicates strong sustainability, well-covered by earnings of $3.80 per share (trailing twelve months) and levered free cash flow (FCF, cash generated after capital expenditures) of $410 million.
• SCI's dividend yield exceeds that of peer CSV (0.9%), positioning it as a leader in the funeral services space.
• High debt-to-equity (318%) is typical for the capital-intensive deathcare industry, but robust ROE (32.73%) supports ongoing payments.

Dividend Overview

Service Corporation International (SCI), North America's largest provider of funeral and cemetery services, maintains a modest quarterly dividend policy. The current annual dividend stands at $1.36 per share, delivering a yield of 1.55% based on a recent stock price near $88. Payments occur every three months, with the most recent ex-dividend date on March 13, 2026, and payment on March 31, 2026. This profile classifies SCI as a dividend growth stock rather than a high-yield play, appealing to investors seeking reliable increases over time amid the recession-resistant deathcare sector. The payout reflects disciplined capital allocation, balancing shareholder returns with investments in operations and acquisitions.

Dividend History and Growth

SCI has demonstrated consistent dividend growth, raising payouts annually for 15 straight years. From $0.27 per quarter in early 2013 (annual $1.08 equivalent), the dividend has climbed steadily to $0.34 quarterly today. Recent history shows acceleration: $1.12 total in 2023, $1.20 in 2024, $1.30 in 2025, and $1.36 projected for 2026. No cuts have occurred in over three decades of quarterly payments, underscoring a long-term strategy prioritizing shareholder value. This track record aligns with the company's stable revenue from essential services, supporting progressive increases even through economic cycles.

Dividend Sustainability and Payout Ratio

SCI's dividend appears highly sustainable, with a payout ratio of 34.21%—meaning only about one-third of trailing earnings ($3.80 EPS) goes to dividends. This leaves ample room for growth. Levered FCF of $410 million (TTM) comfortably covers the estimated $240 million annual dividend obligation. While debt-to-equity stands at 318% due to real estate-heavy operations, operating cash flow ($943 million TTM) and profit margins (12.59%) provide robust coverage. ROE of 32.73% signals efficient capital use, bolstering confidence in continued payments despite moderate liquidity (current ratio 0.55).

Dividend Compared to Industry Peers

In the niche funeral services industry, SCI's 1.55% yield outpaces smaller peer Carriage Services (CSV) at 0.9% with a $0.45 annual dividend and 14% payout ratio. Few public competitors exist, but SCI's scale as the sector leader enables a higher, more consistent yield than CSV's modest profile. Relative to the broader consumer cyclical sector average (around 2.8%), SCI's offering is below par but superior within deathcare, reflecting its growth-oriented stance over ultra-high yields.

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Is This Stock Attractive for Dividend Investors?

Service Corporation International (SCI) suits dividend growth investors prioritizing steady hikes over sky-high yields, given its 15-year streak and low 34% payout ratio. Long-term holders may appreciate the defensive nature of deathcare demand, which weathers recessions and demographic tailwinds from aging populations. Conservative income seekers could value the 1.55% yield backed by strong FCF and earnings coverage, though high leverage warrants monitoring. It's less ideal for yield chasers (under 2%) or short-term traders, but appeals to those building portfolios around reliable compounders in essential services. Balanced against peers like CSV, SCI offers a competitive edge in size and consistency. Overall, its profile fits patient investors focused on total return via dividends and modest appreciation.

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