3 Consumer Staples with Dividends to Strengthen Your Portfolio
Defensive Stocks in Volatile Markets: Defensive stocks, particularly in the consumer staples sector, can help preserve capital during market downturns by limiting losses and providing reliable dividend income.
Consumer Staples as Safe Investments: Companies in the consumer staples sector are considered safe investments due to their consistent demand for essential goods, which leads to predictable revenue and lower volatility compared to other sectors.
Waste Management's Strong Dividend Performance: Waste Management Inc. has established a strong market position with a high dividend payout rate and a history of increasing payouts, making it an attractive option for investors seeking reliable income.
Service Corporation International's Growth Potential: Service Corporation International, a leading provider of funeral and cemetery services, benefits from a unique business model that allows for upfront payments, supporting a healthy dividend yield and capital growth.
Trade with 70% Backtested Accuracy
Analyst Views on SCI
About SCI
About the author

- Profitability Improvement: Service Corporation International (SCI) reported adjusted earnings per share of $1.14 for Q4 2025, an 8% increase year-over-year, driven by moderate revenue and gross profit growth in both funeral and cemetery segments, indicating the company's stability and profitability in the market.
- Sales Growth Dynamics: Core funeral revenue increased by $6 million year-over-year despite a 1.9% decline in core service volume, while non-funeral preneed sales revenue rose by over $2 million, showcasing strong performance in insurance-funded contract sales.
- Cash Flow Performance: The adjusted operating cash flow for Q4 reached $213 million, with full-year operating cash flow at $966 million, reflecting a $108 million increase from the previous year, demonstrating effective cash flow management and capital return capabilities.
- Future Outlook: Management guided for 2026 normalized EPS between $4.05 and $4.35, with a growth range of 5% to 13%, and anticipates low to mid-single-digit growth in funeral and cemetery sales, reflecting a cautiously optimistic view on future market conditions.
- Financial Overview: In Q4 2025, Service Corporation International reported a non-GAAP EPS of $1.14, aligning with expectations, while revenue of $1.11 billion, a 1.8% year-over-year increase, fell short by $10 million, indicating slight market demand fluctuations.
- Sales Growth: Comparable preneed funeral sales surged 11% in Q4 2024, and comparable total funeral sales averaged a 3% increase, reflecting robust market demand in the funeral services sector, despite overall revenue missing projections.
- Cash Flow Performance: GAAP operating cash flow for 2025 was $943 million, slightly down from $945 million in 2024, while adjusted operating cash flow was $966 million, demonstrating stable cash flow management despite a minor decline.
- 2026 Outlook: The company anticipates 2026 diluted EPS to range between $4.05 and $4.35, aligning with its long-term growth framework of 8%-12%, indicating confidence in future growth, although expected cash taxes of $120 million may impact net cash flow.
- Significant Earnings Growth: In Q4 2025, adjusted earnings per share rose by 8%, with full-year adjusted EPS reaching $3.85, a 9% increase from the previous year, reflecting the company's strong performance in the deathcare sector and boosting investor confidence.
- Robust Cash Flow: The company generated $966 million in adjusted operating cash flow for the full year 2025, supporting strategic acquisitions and new funeral home developments while returning $645 million to shareholders, indicating effective capital allocation.
- Sustained Sales Growth: Preneed funeral and cemetery sales grew by 6% in Q4, alongside continued improvement in average funeral revenue, reflecting the company's competitive position and stable customer demand, which is expected to drive future revenue growth.
- Optimistic 2026 Outlook: The company anticipates adjusted earnings per share for 2026 to range from $4.05 to $4.35, aligning with its long-term growth target of 8% to 12%, demonstrating confidence in future performance and ongoing growth potential.
- Earnings Announcement Date: Service Corporation International (SCI) is set to release its Q4 2023 earnings on February 11th after market close, with consensus EPS estimates at $1.14, reflecting a 7.5% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: Analysts project that SCI's Q4 revenue will reach $1.12 billion, representing a 2.8% year-over-year increase, suggesting the company can maintain stable revenue growth in the current economic climate.
- Performance Beat Record: Over the past two years, SCI has exceeded EPS estimates 88% of the time and revenue estimates 88% of the time, showcasing its strong performance stability and market adaptability.
- Market Confidence: With visible demand and solid pricing power, investor sentiment towards SCI remains optimistic, as its business model and market position are expected to continue generating value for shareholders.
- Earnings Announcement Schedule: Service Corporation International (SCI) is set to announce its Q4 earnings on February 11 before market open, with a consensus EPS estimate of $1.14, reflecting a 7.5% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.12 billion, representing a 2.8% year-over-year increase, which underscores the company's solid demand and pricing power, further solidifying its market position.
- Historical Performance: Over the past two years, SCI has beaten EPS estimates 88% of the time and revenue estimates 88% of the time, demonstrating consistency and reliability in its financial performance.
- Market Confidence: With the upcoming earnings report, market confidence in SCI remains strong, as analysts generally believe the company possesses solid pricing power and visible demand, suggesting continued robust business growth.
- Earnings Release Announcement: Service Corporation International expects to issue its fourth quarter 2025 financial results on February 11, 2026, reflecting the company's ongoing commitment to transparency and investor communication.
- Conference Call Details: Management will host a conference call on February 12, 2026, at 8:00 a.m. Central Time, providing investors with a direct opportunity to engage with the leadership team and enhance market confidence.
- Dial-In Information: Investors can participate by calling (888) 317-6003 or international callers at (412) 317-6061 using code 4533133, ensuring broad dissemination and participation in the event.
- Replay Availability: The conference call replay will be available until February 19, 2026, allowing investors who cannot attend live to access key information, further enhancing the company's transparency and investor relations.





