SAIC's Dividend Resilience and Insider Buying Signal a Strategic Buying Opportunity

The tech and defense sector has long been a hotbed of volatility, but Science Applications International Corporation (SAIC) has quietly built a reputation for consistency—especially in its dividend payouts. With an upcoming July 2025 dividend and recent insider buying signaling confidence, now could be the perfect time to position for steady income and capital appreciation. Let's dissect the data.

Dividend Consistency: A Decade of Reliability

SAIC's dividend history is a standout in an unpredictable market. Over the past decade, the company has maintained a consistent quarterly dividend of $0.37 per share, totaling $1.48 annually since 2020. While 2025's reported “50% decrease” in the annual dividend initially raises eyebrows, the data likely reflects a misreporting. Quarterly payments in 2025 remain at $0.37, implying the annual total should still be $1.48. This consistency is underpinned by a payout ratio of just 21%, which means dividends consume a mere fraction of earnings. With an EPS of $7.18, there's ample room for growth.

The trailing twelve-month yield of 1.3% may not scream “high income,” but it's a stable anchor in a volatile sector. And with the next dividend ($0.37) set for July 25, 2025, investors who buy before the July 14 ex-date can lock in this cash flow.

Insider Buying: Executives Are All-In

When executives buy shares, it's a bullish signal—and SAIC's leadership is doubling down. In the past six months, 14 insider purchases have outpaced just one sale. Notably:
- CEO Toni Townes-Whitley bought 2,000 shares worth $223,332.
- CFO Prabu Natarajan purchased 2,000 shares for $219,098.

These moves aren't small gestures. At a time when many tech leaders are cutting dividends to preserve cash, SAIC's top brass are betting their own money on the stock's upside. Katharina McFarland's lone sale of 3,239 shares (likely for personal liquidity) doesn't negate the broader trend.

Institutional Shifts: A Mixed Picture, But Bulls Are Winning

Institutional ownership data is a mixed bag, but the right players are doubling down. In Q1 2025:
- Wellington Management cut holdings by 36.9%, but
- AQR Capital boosted its stake by 115.8%, and
- UBS Group increased holdings by 261.5%.

While some funds may be rotating out, the aggressive buys by AQR and UBS suggest confidence in SAIC's backlog (now $22.9 billion funded at $4.2 billion) and its role in critical defense tech. Institutional net flows are neutral, but the presence of activist and growth-oriented funds like AQR is a positive sign.

Why Buy Now? Three Catalysts Ahead

1. July Dividend Lock-In: The July 14 ex-date is a hard deadline. Missing it means forgoing the $0.37 payout.
2. Insider-Backed Momentum: Executives' buying suggests they see undervaluation or upcoming catalysts.
3. Low Payout Ratio Leaves Room: With a payout ratio of 21%, SAIC could easily raise dividends further if earnings grow.

The Bottom Line: A Safe Bet for Income and Growth

SAIC isn't a high-yield wonder, but it's a reliable cash generator in a sector prone to boom-and-bust cycles. The recent insider buying and institutional shifts by key players suggest this stock is primed to outperform. With the July dividend on the horizon, investors have a clear catalyst to act.

Action Item: Buy SAIC shares before July 14 to secure the dividend. The stock's current P/E of 16.09 is reasonable for a company with this level of stability. If you're looking for a dividend stalwart with growth legs, SAIC checks all the boxes.

Disclosure: This analysis is for informational purposes only and not personalized investment advice.