Updated 2/23/26
Service Corporation International, or SCI, probably isn’t a household name for most investors, but it quietly runs one of the steadiest businesses out there. As the largest provider of funeral, cremation, and cemetery services in North America, SCI operates in a space that’s rarely talked about but always relevant. Deathcare isn’t flashy, but it’s dependable—and that reliability makes SCI a name worth watching for long-term dividend investors.
Headquartered in Houston, the company runs a network of funeral homes and cemeteries across the U.S. and Canada. While the industry itself doesn’t often make headlines, the demographics driving it are powerful and consistent. The aging population means a steady demand for SCI’s services, and that kind of built-in stability offers a level of resilience that many businesses can’t match.
Let’s take a closer look at recent developments and what dividend-focused investors might want to know.
Recent Events
SCI’s latest results show a business continuing to execute on its core strengths. Revenue came in at just over $4.3 billion, and earnings per share reached $3.80—solid numbers that reflect the company’s consistent operating model. It’s not the kind of growth that grabs headlines, but it reinforces what SCI is all about: steady, predictable results in an industry that doesn’t swing wildly with the broader economy.
Management continues to prioritize shareholder returns. SCI raised its quarterly dividend again in late 2025, bumping the per-share payment to $0.34 in the December cycle—a meaningful step up from the $0.27 paid just two years prior. Share buybacks have also remained active, reflecting the company’s confidence in its own cash generation. With nearly $943 million in operating cash flow over the past year, SCI has more than enough room to service its debt while continuing to reward shareholders.
The debt load remains substantial—just under $5 billion in total—and the debt-to-equity ratio stays elevated. But with stable, recurring cash flow and consistent profitability, SCI has demonstrated the financial durability to manage its obligations without compromising on dividend growth or capital returns.
Key Dividend Metrics
📅 Ex-Dividend Date: December 15, 2025
💰 Last Dividend Payment: $0.34 per share
📈 Forward Yield: 1.64%
💵 Annual Dividend: $1.36 per share
📊 Payout Ratio: 34.21%
📆 Dividend Growth Streak: 14 years
🔁 5-Year Average Yield: ~1.55%
🧮 EPS: $3.80
Dividend Overview
SCI’s dividend yield currently sits at 1.64%, which won’t turn heads in a yield-chasing environment. But that figure understates the full picture. What’s more compelling is how reliably and conservatively SCI supports that dividend. The payout ratio of 34.21% leaves plenty of room for continued growth and provides meaningful insulation from any near-term earnings pressure. A company paying out just over a third of its earnings in dividends has significant flexibility—and SCI has used that flexibility consistently.
The dividend has become a central pillar of SCI’s shareholder return strategy. It’s not a passive commitment; it’s an active one, backed by strong cash generation and an operating model that holds up regardless of broader economic conditions. Even in choppy markets, SCI’s dividend has continued to climb, reflecting management’s conviction in the durability of its business.
Dividend Growth and Safety
SCI has now increased its dividend for 14 consecutive years, extending one of the more understated growth streaks in the consumer services space. The most recent increase—taking the quarterly payout from $0.32 to $0.34 in December 2025—represents a 6.25% bump, continuing the moderate but dependable upward trend that income investors appreciate. Looking back over the past two years, the quarterly dividend has grown from $0.27 to $0.34, a cumulative increase of roughly 26%.
The safety picture is equally reassuring. Free cash flow came in at approximately $410 million over the last twelve months, and operating cash flow topped $942 million. Against a total annual dividend obligation of roughly $190 million, the coverage is substantial. SCI isn’t stretching to fund its payout—it’s generating cash well in excess of what’s needed to sustain and grow it.
Profitability metrics reinforce the story. Return on equity stands at 32.73%, and profit margin is running at 12.59%. These are not the numbers of a company scraping by—they reflect a business with genuine pricing power and operational discipline. That kind of profitability gives SCI the ability to keep delivering for shareholders even if volume trends shift or one-time costs arise.
Analyst Ratings
With no fresh analyst rating actions available as of this writing, the most useful lens is SCI’s own financial profile and where it sits relative to historical valuations. The stock is currently trading at $79.45, which places it in the lower half of its 52-week range of $71.75 to $86.67. That positioning, combined with a P/E ratio of 20.91 and a payout ratio firmly in the low 30s, suggests the market is pricing SCI as a stable compounder rather than a high-growth story—which is precisely what it is.
Given SCI’s consistent earnings trajectory, strong free cash flow, and 14-year dividend growth streak, the fundamental case for the stock remains intact. The company’s return on equity of 32.73% compares favorably to most peers in the consumer services space, and its beta of 1.01 suggests the market now views SCI as roughly in line with broad market risk—a shift from the lower-beta profile it carried in prior years.
Any analyst consensus that emerges around current levels would likely need to weigh the stock’s proximity to fair value against the predictability of its cash flows and the ongoing demographic tailwind. At $79.45, investors aren’t getting a deep discount, but they’re also not paying a premium for a business that rarely surprises to the downside. For income-focused investors, that’s a reasonable place to be.
Earning Report Summary
Solid Top and Bottom Line
Service Corporation International posted full-year revenue of $4.31 billion, reflecting the company’s continued ability to grow its top line in a deliberate and measured way. Net income came in at $542.6 million, and EPS reached $3.80—a figure that comfortably supports the current dividend and leaves room for further payout growth. Operating cash flow of nearly $943 million underscores the strength of SCI’s cash-generating engine, even after accounting for capital expenditures that brought free cash flow to approximately $410 million.
Funeral Segment Remains the Anchor
The funeral business continues to be SCI’s most reliable revenue driver. The segment benefits from both pricing discipline and the company’s scale advantages, which allow it to manage costs in ways smaller operators simply can’t match. Margin performance across the funeral segment has remained firm, and the company’s ability to pass through modest price increases without meaningful volume disruption speaks to the inelastic nature of the services it provides.
Cemetery Operations and Continued Expansion
The cemetery segment continues to benefit from SCI’s ongoing acquisition activity and real estate investment. The company has maintained its strategy of selectively adding funeral homes and cemetery properties where they can leverage existing operational infrastructure. These additions are expected to contribute to revenue over time and further cement SCI’s leadership position in an industry where scale and local brand recognition matter considerably.
Cash Flow and Capital Discipline
Operating cash flow held strong at $942.8 million despite ongoing investment activity, demonstrating that SCI’s capital allocation discipline remains a core strength. The company’s ability to generate nearly a billion dollars in annual operating cash flow while simultaneously expanding its footprint, maintaining its dividend, and executing buybacks is a testament to the durability of its business model. Management’s long-term growth framework—targeting consistent EPS gains in the high single digits—appears well within reach given current profitability levels.
Financial Health and Stability
The balance sheet carries some weight. SCI’s total debt remains substantial, and its price-to-book ratio of 6.77 against a book value per share of just $11.73 reflects the significant leverage embedded in the capital structure. At first glance, that might give conservative investors pause. But in context, this leverage is intentional and manageable. SCI owns a large base of physical assets—cemeteries and funeral homes—and its preneed contract model provides long-term revenue visibility that most businesses would envy.
The current ratio remains lean, consistent with SCI’s historical approach of leaning on recurring cash flow rather than maintaining large cash reserves. With nearly $943 million in annual operating cash flow, the company has the resources to meet its obligations, invest in growth, and maintain its dividend program without straining the balance sheet. Return on assets of 3.40% looks modest in isolation, but it’s appropriate for a capital-intensive business with stable, predictable cash flows.
This isn’t a pristine balance sheet, but it’s a durable one—engineered for a business that doesn’t rely on rapid growth or economic tailwinds to stay profitable and cash-generative year after year.
Valuation and Stock Performance
At $79.45, SCI trades at a P/E of 20.91—a multiple that reflects the market’s appreciation for the company’s consistency without pricing in any meaningful growth acceleration. The stock sits in the lower half of its 52-week range of $71.75 to $86.67, which means investors aren’t chasing the stock at a peak. That’s a reasonably comfortable entry point for a business with SCI’s track record.
The price-to-book ratio of 6.77 looks elevated on the surface, but this is typical for asset-heavy businesses that carry significant goodwill and long-lived tangible assets. What matters more for SCI is the cash flow multiple, which remains supportive given operating cash flow of nearly $943 million relative to a market cap just over $11.1 billion.
A beta of 1.01 represents a modest shift from the lower-beta profile SCI carried in prior years, suggesting the market is treating the stock with roughly the same risk profile as the broad market. For income-focused investors, that’s a meaningful data point—SCI no longer offers quite the same defensive cushion it once did during broad market sell-offs, though its business fundamentals remain as predictable as ever. The current valuation appears fair rather than compelling, making it a hold for existing investors and a watchlist candidate for those seeking a better entry point.
Risks and Considerations
While SCI offers a high degree of predictability, it’s not without risks worth tracking. The most persistent is leverage. High debt levels can become a headache if refinancing conditions tighten or interest rates stay elevated. Management has navigated this well historically, but the debt load warrants ongoing attention, particularly given that book value per share is only $11.73 against a stock price of nearly $79.45.
Regulatory complexity is another constant. Operating funeral homes and cemeteries across dozens of states involves a layered web of local and state regulations. SCI’s scale helps it manage compliance more efficiently than smaller operators, but legal and regulatory costs are a persistent drag and can occasionally produce one-time charges that weigh on reported results.
The organic growth ceiling is real as well. SCI operates in a slow-growing industry where volume is ultimately tied to mortality rates and demographic trends. Explosive top-line growth isn’t part of the story, and investors who prioritize capital appreciation over income may find the pace frustrating. For dividend investors, though, steady growth in a stable industry is precisely the point.
Finally, the ongoing shift toward cremation—typically a lower-revenue transaction than traditional burial—continues to exert pressure on average revenue per call. SCI has adapted its service offerings and pricing to partially offset this, but the mix shift bears watching as it affects long-term margin trajectory.
Final Thoughts
SCI isn’t the kind of stock that makes headlines, and it probably won’t ever be the hottest pick in anyone’s portfolio. But for dividend investors looking for consistency, resilience, and quiet compounding, it brings a lot to the table. A 14-year dividend growth streak, a payout ratio in the low 30s, and nearly $943 million in annual operating cash flow form the backbone of a dividend that’s both dependable and growing.
The most recent dividend increase—to $0.34 per quarter—continues a pattern of disciplined, measured payout growth that has been a hallmark of SCI’s capital return strategy for over a decade. At a current yield of 1.64% and a stock price sitting in the lower half of its 52-week range, the setup isn’t screaming value, but it’s not expensive either. For investors who already own SCI, the case for holding is strong. For those on the sidelines, patience for a slightly better entry point near the low end of the trading range could improve the long-term return profile.
The debt position remains something to monitor, and the cremation mix shift is a slow-moving headwind worth tracking. But the overall financial health, dividend safety, and demographic tailwind supporting demand for SCI’s services make it a worthy anchor for a diversified income portfolio—steady, durable, and quietly dependable.