Service Corporation Raises Dividend, Reinforces Growth Strategy

Core Insights - Service Corporation International (SCI) has increased its quarterly dividend by 6.7% to 32 cents per share, with payment scheduled for March 31, 2025 [1] - The company has returned approximately $428 million to investors in 2024, including over $174 million in dividends and more than $250 million in stock buybacks, demonstrating strong financial health [3] - SCI's aggressive acquisition strategy in 2024 involved spending $181 million, surpassing its target range of $75 million to $125 million, to enhance its market presence [4] - The transition from trust-funded to insurance-funded pre-need contracts is expected to improve revenue predictability and profitability, despite a temporary decline in pre-need sales production [5] - The company is investing $25 million in technology and operational efficiencies in 2025 to enhance customer engagement and streamline processes [6] Financial Performance - In the fourth quarter of 2024, SCI returned approximately $100 million to shareholders, distributing $43 million in dividends and repurchasing nearly $56 million worth of shares [2] - The stock has risen 3.2% over the past six months, compared to the industry's growth of 4.1% [6] Strategic Initiatives - SCI's strategic investments and leadership position in the deathcare industry are expected to benefit from long-term demographic trends [10] - The company continues to focus on balancing growth investments with shareholder rewards through its capital allocation strategy [3][10]