Service Corporation International SCI, the largest provider of deathcare products and services in North America, continues to reinforce its commitment to consistent shareholder returns through disciplined capital allocation and stable cash flow generation.
Service Corp announced a quarterly cash dividend increase to 36 cents per share from the previously declared 34 cents, marking a 6% hike. The dividend will be payable on June 30, 2026, to its shareholders of record at the close of business on June 15. The latest dividend increase reflects management’s confidence in the company’s resilient business model and long-term financial strength.
SCI has consistently prioritized returning capital to its shareholders through regular dividend increases, supported by dependable demand trends in funeral, cemetery and cremation services. The company’s broad geographic footprint and diversified service offerings continue to provide stable recurring revenues and strong cash-generation capabilities.
In first-quarter 2026, Service Corp returned $190 million in capital to its shareholders, comprising $143 million in share repurchases and $47 million in dividend payments. The company bought back nearly 2 million shares during the quarter at an average price of roughly $80 per share, bringing its outstanding share count to a little more than 130 million as of the end of March.
Management noted that while it intends to continue paying regular quarterly dividends, future declarations will remain subject to board approval following a review of financial performance and liquidity conditions. The company also highlighted potential risks, including financing restrictions, tax law changes and shifts in cash requirements, which could affect future dividend decisions.
What More Should Investors Know About SCI?
Headquartered in Houston, TX, SCI currently operates 1,487 funeral service locations and 503 cemeteries across North America under several recognized brands, including Dignity Memorial. Serving nearly 700,000 families annually, the company remains well positioned to drive long-term growth while maintaining a strong shareholder-friendly capital return strategy.
Service Corp continues to benefit from strong momentum in its preneed cemetery business, supported by healthy sales execution and expanding community outreach initiatives. In first-quarter 2026, preneed cemetery sales production increased 10% year over year, driven by robust large sales activity and improving sales velocity. Management highlighted growing success from seminar-based marketing efforts, expansion of community sales teams and improved lead generation strategies, which are helping SCI reach customers beyond traditional funeral-home channels.
The company is also strengthening its long-term growth platform through strategic investments and acquisitions. During the quarter, SCI invested $108 million across maintenance projects, cemetery development, digital initiatives and new funeral-home construction. Additionally, the company spent $24 million on acquisitions across multiple states, while management indicated continued optimism regarding its acquisition pipeline for 2026.
In the past six months, this Zacks Rank #4 (Sell) company has lost 2.1% against the industry’s 1.1% growth.
SCI Stock's Price Performance
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