Service Corporation International SCI, North America's largest provider of deathcare products and services, has increased its quarterly dividend by 6.7% to 32 cents per share. The dividend is scheduled for payment on March 31, 2025, to its shareholders of record as of March 14.

SCI has consistently prioritized shareholder value through a balanced approach of dividend increases and share repurchases. In the fourth quarter of 2024, the company returned approximately $100 million to its shareholders, distributing $43 million in dividends while repurchasing nearly $56 million worth of shares.

In 2024, SCI has returned a total of $428 million to its investors, including over $174 million in dividend payments and more than $250 million in stock buybacks. This strategic capital allocation highlights the company’s strong financial health and disciplined approach to balancing growth investments with shareholder rewards.

What More Should Investors Know About SCI?

Service Corporation continues to grow its market presence through strategic acquisitions and capital investments. In 2024, the company spent $181 million on acquisitions, exceeding its initial target range of $75 million to $125 million. This aggressive acquisition strategy helps SCI consolidate its leadership in the deathcare industry by adding high-quality funeral homes and cemeteries to the portfolio.

Another key shift in SCI’s strategy is the transition from trust-funded to insurance-funded pre-need contracts. This transition is expected to increase revenue predictability and profitability, as insurance-funded pre-need contracts provide higher commission rates and greater financial flexibility. While the transition led to a temporary decline in pre-need sales production, management expects growth to resume in the second half of 2025. This strategic move aligns with SCI’s goal of improving customer experience while enhancing revenue streams.

SCI is investing in technology and operational efficiencies to streamline its processes and improve customer engagement. The company allocated $25 million to digital strategy investments in 2025, focusing on enhancing online customer interactions, optimizing pre-need sales platforms and implementing automation to reduce administrative burdens.

In the past six months, the stock has risen 3.2% compared with the industry’s 4.1% growth.

SCI Stock Past Six Months Performance

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Final Words on SCI

SCI’s latest dividend increase highlights its ongoing commitment to returning capital to shareholders. The company continues to benefit from its leadership position in the deathcare industry, long-term demographic trends and strategic investments. However, SCI currently holds a Zacks Rank #4 (Sell), indicating near-term challenges despite its long-term growth initiatives.

Stocks to Consider

United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. It currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The consensus estimate for United Natural Foods’ current financial-year sales and earnings implies growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average.

Freshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently has a Zacks Rank #2. FRPT delivered a trailing four-quarter earnings surprise of 144.5%, on average.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.2% and 227.1%, respectively, from the prior-year reported levels. 

Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.

The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels.

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