A recycling company, Waste Management Inc (WM), has had some losses since the start of this year. This decline period might be a good opportunity to invest as Waste Management’s business is up-and-coming and pays dividends.
Waste Management involves the collection, transportation, and disposal of waste. In the U.S. and Canada, this company operates the largest network of waste disposal sites. In addition to population growth and waste volume increases, at least two other trends influence the Waste Management business. They are environmental trends that increase the demand for waste management and better disposal of waste.
Waste Management Inc (WM) offers waste management services ranging from industrial to residential. In general, commercial enterprises earn the company the most, followed by industrial enterprises with 15% and residential buildings with 15%. In a challenging economy, Waste Management’s diversification enabled it to demonstrate greater stability.
A decrease of as little as 3.35 to 3.75% is possible in its revenues by the year’s end. Meanwhile, cost reductions contributed to Waste Management maintaining high free cash flow. Free cash flow was the highest in history in its fourth quarter of 2019 and second highest in its third quarter of 2020. Dividends may reach $2.3 per share by 2021 as a result of increased quarterly profits. An additional share buyback program is expected to amount to up to $1.35 billion.
The Waste Management company is on the path to becoming a dividend aristocrat. Due to the consistent generation of strong free cash flow, the company has increased annual payments for 18 years. This makes WM stocks an ideal long-term investment. The dividend history is a testament to the stable nature of the company.
Waste Management Inc. (NYSE: WM) is -3.56% down year-to-date (YTD) and has moved up 0.57% or $0.65 in the recent trading session. Despite this, the stock’s trailing-12-month performance remains nearly -8.09% lower. In comparison, the stock is -3.56 percent down over the trailing 3-month period and -2.0% over the trailing 12-month period. The shorter-term performance for the month is 2.16 percent and -3.42% for the week.