It seems much more natural to ask, "¿Qué dijo él?"
But, when you're not using the interrogative, it's more natural to say, "Él dijo."
That said, I often reverse subject and verb when using decir with a noun (instead of a pronoun). I learned to say it that way in Central America. The internet tends to agree with me.
'Dijo el profesor que' gets a lot more hits than 'el profesor dijo que'.
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