Service Corporation: Profiting On The Inevitable

Dividend | Stock | Investing | Valuation

Service Corporation (SCI) is the largest funeral home/cemetery operator in North America. While the death care industry has benefited from 2020 and COVID, the industry is still poised to generate solid growth moving forward, barring anti-aging making serious headway.

The funeral home/cemetery market is highly fragmented with estimates putting the top 3 owners having just 15% of the market. That leaves plenty of room for consolidation of the industry which Service Corporation should be able to take advantage of.

Dividend History

The dividend growth strategy is the one that appealed most to me when I began my investment journey. The idea is simple: find quality businesses that are able and willing to share some of the business' cash flow with shareholders via rising dividends.

Service Corporation Dividend HistoryImage by author; data source Service Corporation Investor Relations

According to the CCC list, Service Corporation is a Dividend Contender with 10 consecutive years of dividend growth. Their dividend growth streak got off to an uninspiring start stalling after just 2 years of growth; however, starting in 2011 dividend growth has been coming on the regular.

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