WM Stock: Waste Management, Inc. Hikes Dividend 9.4%
Waste Management Increases Dividend
Today, we turn our attention to one of the market’s hidden gems…Waste Management, Inc. (NYSE:WM).
The average American produces 4.4 pounds of garbage each day. Nationwide, that adds up to some 254 million tons of trash produced each year or enough to fill around 22 million garbage trucks. (Source: “Municipal Solid Waste,” Environmental Protection Agency, 2013.)
Houston-based Waste Management hauls away most of that rubbish. No, such a business doesn’t get mentioned much at cocktail parties. But the company generated $13.6 billion in revenue last year, creating a lucrative income stream for shareholders.
And judging by the latest Waste Management stock news, the company’s future looks bright. In a press release Thursday, the board raised the quarterly dividend 9.4% to $0.465 per share. For investors, the move represents Waste Management’s 15th consecutive dividend increase.
Executives also topped up Waste Management’s share repurchase program. In the same announcement, the company pledged to buy back $1.3 billion of common shares. CEO Jim Fish credited the move to cost containment, improving core prices, and growing high margin volumes. (Source: “Waste Management Announces Plan to Increase Quarterly Dividend Payments and Authorization for up to $1.25 Billion in Share Repurchases,” BusinessWire, December 14, 2017.)
As you can see in the chart below, Wall Street has taken notice. WM stock has enjoyed a quiet bull market since 2008, more than tripling in value. Shares have returned nearly 80% over the past three years alone.
Chart courtesy of StockCharts.com
Waste Management might not get a lot of airtime on CNBC, but for shareholders, this hidden gem has made them a fortune.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.