Service Corporation International’s (SCI) latest announcement underscores its financial health and commitment to shareholder value. The provider of deathcare products and services across North America has given the green light for an uptick in its quarterly cash dividend, setting the new rate at 30 cents per share.
This marks a 3.4% increase from the company’s prior quarterly dividend, which stood at 29 cents per share. This move not only reflects SCI’s operational success and stable financial footing but also signals a positive outlook toward its earnings and cash flow capabilities.
The updated quarterly dividend is slated for distribution on Mar 28, 2024, to shareholders of record as of Mar 15, 2024. This strategic decision aligns with SCI’s objective to deliver consistent and rewarding returns to its investors.
Notably, the company has stated that its future dividends are subject to the board’s quarterly review and approval, based on its ongoing financial performance. This approach ensures that while SCI aims to maintain a regular dividend payout, it retains the flexibility to adjust its capital allocation strategies in response to changing market conditions and internal financial health.
SCI’s announcement is significant for investors and the market at large, highlighting the company’s resilience and adaptability in the face of evolving industry dynamics. By increasing its dividend, the company not only rewards its current shareholders but also attracts new investors seeking stable dividend-paying stocks.
Other Strategic Moves
SCI’s commitment to renovating and modernizing facilities, along with expanding cemetery inventory, reflects a strategic approach to meeting evolving consumer preferences and expanding market reach. The company is also investing in market opportunities through construction and acquisitions, demonstrating its commitment to growth and expansion.
There was a notable increase of 8% in cemetery revenues in the fourth quarter of 2023 from the previous year, driven by 11% growth in recognized pre-need revenues.
Pre-need funeral sales production saw growth of approximately 4% over the previous quarter, with both core and SCI Direct channels experiencing growth. This indicates a healthy demand for pre-need arrangements.
Shares of this Zacks Rank #3 (Hold) company have gained 17.4% in the past three months compared with the industry’s growth of 12.8%.
Some Better-Ranked Companies
Some better-ranked stocks from the same sector are Inter Parfums, Inc. IPAR, Lamb Weston Holdings, Inc. LW, and e.l.f. Beauty, Inc. ELF.
Inter Parfums is engaged in the manufacturing, distribution, and marketing of a wide range of fragrances and related products. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Inter Parfums’ current financial-year earnings and sales indicates growth of 20.4% and 21.6%, respectively, from the 2022 reported figures. IPAR has a trailing four-quarter average earnings surprise of 45.7%.
Lamb Weston is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. LW currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year earnings and sales indicates growth of 26.9% and 28.3%, respectively, from the fiscal 2023 reported figures. LW has a trailing four-quarter average earnings surprise of 28.8%.
e.l.f. Beauty operates as a cosmetic company. It currently has a Zacks Rank #2.
The Zacks Consensus Estimate for e.l.f. Beauty’s current fiscal-year earnings and sales indicates growth of 83.1% and 71.6%, respectively, from the fiscal 2023 reported figures. ELF has a trailing four-quarter average earnings surprise of 69.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
