Stock Analysis

Interested In Science Applications International Corporation (NYSE:SAIC)’s Upcoming $0.31 Dividend? You Have 6 Days Left

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Important news for shareholders and potential investors in Science Applications International Corporation (NYSE:SAIC): The dividend payment of $0.31 per share will be distributed into shareholder on 26 January 2018, and the stock will begin trading ex-dividend at an earlier date, 11 January 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let's take a look at Science Applications International's most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for Science Applications International

5 questions I ask before picking a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

  • Is it paying an annual yield above 75% of dividend payers?
  • Does it consistently pay out dividends without missing a payment of significantly cutting payout?
  • Has the amount of dividend per share grown over the past?
  • Is is able to pay the current rate of dividends from its earnings?
  • Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

NYSE:SAIC Historical Dividend Yield Jan 5th 18
NYSE:SAIC Historical Dividend Yield Jan 5th 18

How does Science Applications International fare?

The company currently pays out 33.02% of its earnings as a dividend, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 32.40%, leading to a dividend yield of around 1.68%. In addition to this, EPS should increase to $3.86. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments. Unfortunately, it is really too early to view Science Applications International as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Science Applications International produces a yield of 1.60%, which is on the low-side for it stocks.

What this means for you:

Are you a shareholder? Investors may not have the best feeling about their investment in Science Applications International right now, in terms of its dividend attributes. It may be worth exploring other dividend stocks as alternatives to Science Applications International or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.

Are you a potential investor? Now you know to keep in mind the reason why investors should be careful investing in Science Applications International for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Check our latest free fundmental analysis to explore other aspects of Science Applications International.

Valuation is complex, but we're helping make it simple.

Find out whether Science Applications International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.