Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



1 Dividend Stock With a Spotless Reputation

In today's video, I look at Waste Management and explain why I'm giving the stock a outperform rating on my profile in Motley Fool CAPS. Waste Management is the largest trash and environmental services business in the U.S. Even in a down economy, garbage needs to be disposed of, which gives Waste Management an edge over businesses in other industries. Additionally, the company's waste-to-energy operations create enough renewable energy each year to power more than 1 million homes.  

Investors craving strong returns will find no shortage of reasons to love Waste Management. The company pays an annual dividend of $1.42 per share and boasts an impressive dividend yield of 4.3%, which is a full percentage point above its closest competitor, Republic Services. Also, even under tough economic conditions, both Waste Management and Republic Services were able to grow their dividends.

Finding stocks that will continue to reward shareholders with rich paybacks isn't as easy as chasing the highest yields. Discover nine safe dividends that will make you money now, in this special free report from The Motley Fool's brightest analysts. Click here for instant access to this free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." It won't be around forever, so be sure to grab your copy today.

Fool contributor Tamara Rutter does not own any stocks mentioned in this video. Follow her on Twitter using the handle @TamaraRutter for weekly stock picks and other Foolish insights. The Motley Fool owns shares of Waste Management. Motley Fool newsletter services have recommended buying shares of Waste Management and Republic Services, as well as writing a covered strangle position in Waste Management. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (2) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 24, 2012, at 2:40 PM, JohnCLeven wrote:

    I believe it will underperform the market in the long run, only outperforming in the short/medium run if we get another crash/recession. Both WM's OCF and FCF annual growth rates over the past 7 years have been ZERO. ROIC has been droped each of the past 5 consecutive years from 8.1 in 2007 to 6.2 in 2011. The P/E is 16, which is pretty pricey for a company with zero growth. Debt/equity is also a dangerous 1.5. Shareholder value is increasing only by buybacks (avg 2% annually this decade) and high dividends of a about 4%. Let's just say this company is fairly valued (best case senario), that would imply about a 6% return annually. Personally, I see today's fair value closer to 27. That would imply a mere 2.5% annual return over the next 5 years, which I believe the the S&P will beat. But who knows? I'm just a 22 year old history major and you're writing investing articles. Perhaps you'll be right.

  • Report this Comment On May 25, 2012, at 12:25 PM, SteinwayB731 wrote:

    All this numbers stuff is fine, although of frankly dubious value. More to the point from a long-term perspective, I had heard rumors of a WM joint venture with Shanghai Environmental group (Bing lists an MSN money url which leads nowhere), and a general push by WM into China markets. If you've ever been to China, you know they've got a problem with managing waste streams, so JV's there could have significant upside. Anybody know anything about this?

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1894027, ~/Articles/ArticleHandler.aspx, 10/22/2016 5:18:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
WM $62.21 Down -0.23 -0.37%
Waste Management CAPS Rating: *****
RSG $49.93 Down -0.05 -0.10%
Republic Services CAPS Rating: *****