Investigating SCI's Dividend History, Yield, Growth, and Sustainability
Service Corp International (SCI, Financial) recently announced a dividend of $0.29 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. As investors eagerly await this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Leveraging the data from GuruFocus, we delve into Service Corp International's dividend performance and assess its sustainability.
Understanding Service Corp International
Service Corp International is a personal services company that provides funeral and cemetery services and products from its locations throughout the United States and Canada. Its operations are segmented into funeral service and cemetery business functions. The company derives the majority of its revenue from its funeral locations, while the cemetery division also contributes significantly to the company's total income. Most of the company's revenue is generated in the United States.
Service Corp International's Dividend History
Service Corp International has maintained a consistent dividend payment record since 2005, distributing dividends on a quarterly basis. The company has increased its dividend each year since 2013, earning it the status of a dividend achiever. This honor is given to companies that have increased their dividend each year for at least the past 10 years.
Service Corp International's Dividend Yield and Growth
As of today, Service Corp International has a 12-month trailing dividend yield of 1.74% and a 12-month forward dividend yield of 1.90%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, Service Corp International's annual dividend growth rate was 12.30%. This rate decreased slightly to 11.60% per year over a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at an impressive 14.60%. Based on its dividend yield and five-year growth rate, the 5-year yield on cost of Service Corp International stock as of today is approximately 3.01%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, we must evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Service Corp International's dividend payout ratio is 0.34.
Service Corp International's profitability rank of 9 out of 10, as of 2023-06-30, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Future Outlook: Growth Metrics
Robust growth metrics are essential for the sustainability of dividends. Service Corp International's growth rank of 9 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Service Corp International's revenue has increased by approximately 13.80% per year on average, a rate that outperforms approximately 83.67% of global competitors.
The company's 3-year EPS growth rate showcases its ability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Service Corp International's earnings increased by approximately 21.10% per year on average, a rate that outperforms approximately 64% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 10.50% outperforms approximately 60.47% of global competitors.
A Final Word on Service Corp International's Dividend Performance
Service Corp International's consistent dividend payments, impressive growth rate, low payout ratio, high profitability, and robust growth metrics make it an attractive option for dividend-focused investors. However, like all investments, it's crucial to conduct thorough research and consider the company's overall financial health before making a decision. With the tools and data available on GuruFocus, investors can make informed decisions based on comprehensive financial analysis.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
