Waste Management Dividend Yield and Shareholder Payout Strategies

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Waste Management's dividend yield is a significant aspect to consider for investors. The company's dividend payout ratio is relatively stable, with a payout ratio of around 50% in recent years.

This means that for every dollar Waste Management earns, it pays out about half a dollar as dividends. This stability is a result of the company's consistent cash flows from its waste management services.

Waste Management's dividend yield is around 3-4% based on its current stock price and annual dividend payments. This is relatively attractive compared to other dividend-paying stocks in the industry.

The company's shareholder payout strategy is to maintain a stable dividend payment, which has been a key factor in attracting and retaining investors.

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Investment Analysis

Waste management companies like Waste Management, Inc. and Republic Services, Inc. have consistently paid dividends to their shareholders, with Waste Management, Inc. paying a dividend yield of 2.3% in 2022.

Their stable cash flows from waste management services enable them to distribute a significant portion of their earnings to shareholders.

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Waste Management, Inc. has a dividend payout ratio of around 50%, indicating a relatively stable dividend payment.

The company's strong financial position and commitment to returning value to shareholders make it an attractive investment option for income-seeking investors.

Dividend growth has been a key driver of total returns for Waste Management, Inc., with a 5-year dividend growth rate of 10.3%.

Republic Services, Inc. has also demonstrated a strong commitment to dividend growth, with a 5-year dividend growth rate of 7.1%.

Investors seeking to benefit from waste management dividend yields should consider the company's financial health, dividend payout ratio, and history of dividend growth.

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Waste Management Performance

Waste Management has consistently increased its cash flow generation and dividend over the years. This is evident in its thirteenth consecutive year of dividend increases.

The company's predictable and durable business model is a key factor in its ability to maintain this streak. WM has the right foundation to keep chugging along.

WM's dividend growth has been decelerating over the past decade, but its recent 6.5% increase has brought it back on track.

Safety Score

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Waste Management's Safety Score is a testament to its financial stability. WM recorded a dividend Safety Score of 97, indicating that its dividend payment is safer than 97% of all other dividend stocks.

This score is a result of WM's healthy earnings and free cash flow payout ratios, which were 66% and 56% respectively over the last four quarters. These ratios are particularly low for a company like WM, which is known for its stable and predictable business.

WM's payout ratios have remained between 40% and 60% in most years over the last decade, giving the company a significant dividend cushion. This means that WM has plenty of room for incremental growth without jeopardizing its dividend payment.

A company's performance during the financial crisis can also be a good indicator of its dividend safety. WM's sales fell by 12% in 2009, but the company still outperformed many others, reflecting its defensive characteristics.

Criteria Checks

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Waste Management has an annual dividend of $3.00 per share.

The company pays this dividend every three months, which is a regular income stream for investors.

The last ex-dividend date was December 6, 2024, marking the end of the previous dividend period.

Waste Management's current yield is 1.42%, which is a relatively modest return on investment.

The company's dividend is well covered by earnings, indicating a stable financial foundation.

This stability is a key factor in Waste Management's ability to maintain its dividend payments over time.

Waste Management is a dividend paying company, providing a regular source of income for investors.

Waste Management Fiscal Year 2022 Guidance

Waste Management provided financial guidance for the fiscal year 2022, which is a significant indicator of their performance.

Their dividend yield is a key metric to consider, and according to the data, it's worth noting.

Waste Management: A Monotonous Growth

Waste Management is a company that has consistently delivered on its promises, providing a predictable and durable business model that's hard to beat.

Credit: youtube.com, Waste Management CEO: Disciplined Growth | Mad Money | CNBC

The company's dividend safety score is a whopping 97, indicating that its dividend is safer than 97% of all other dividend stocks in the market. This is a testament to Waste Management's stable and predictable earnings and free cash flow generation.

Waste Management's payout ratios have remained healthy, ranging between 40% and 60% over the last decade, leaving the company with plenty of room for dividend growth.

The company's sales fell by 12% in 2009, but still outperformed many other types of companies, demonstrating its defensive characteristics.

Waste Management's stock actually gained 5% in 2008, beating the S&P 500 by 42%, which is impressive considering the economic downturn.

The company's return on invested capital is consistently in the high-single digits, which is a sign of a strong and sustainable business model.

Waste Management is also a free cash flow machine, generating a significant amount of cash that allows it to reinvest and return capital to shareholders without requiring debt or issuing shares.

The company's balance sheet is in good shape, with over $1.4 billion in unused and available credit capacity, reducing its credit risk significantly.

Waste Management's dividend growth has been decelerating over the past decade, but its announced increase earlier this month suggests that low- to mid-single digit dividend growth is still on the horizon.

The company's dividend growth rate implied by the Gordon growth model is around 10.51%, which is a reasonable expectation for a company with a stable and predictable business model.

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Frequently Asked Questions

Is waste management a good dividend stock?

Yes, Waste Management has a strong track record of dividend growth, increasing its dividend rate by about 6% annually over the last five years. This makes it a potentially attractive option for income-seeking investors.

How much does waste management pay per share?

Waste Management pays $3 per share annually, with a recent quarterly payout of $0.75 per share. This dividend payment provides a yield of 1.47% based on the company's recent stock price.

Tasha Schumm

Junior Writer

Tasha Schumm is a skilled writer with a passion for simplifying complex topics. With a focus on corporate taxation, business taxes, and related subjects, Tasha has established herself as a knowledgeable and engaging voice in the industry. Her articles cover a range of topics, from in-depth explanations of corporate taxation in the United States to informative lists and definitions of key business terms.

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