Waste Management said on February 6, 2023 that its board of directors declared a regular quarterly dividend of $0.70 per share ($2.80 annualized). Shareholders of record as of March 9, 2023 will receive the payment on March 24, 2023. Previously, the company paid $0.65 per share.

At the current share price of $151.33 / share, the stock’s dividend yield is 1.85%. Looking back five years and taking a sample every week, the average dividend yield has been 1.85%, the lowest has been 1.38%, and the highest has been 2.48%. The standard deviation of yields is 0.25 (n=236).

The current dividend yield is 0.01 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.48. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.27%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 16.88% Upside

As of February 8, 2023, the average one-year price target for Waste Management is $176.88. The forecasts range from a low of $162.61 to a high of $205.80. The average price target represents an increase of 16.88% from its latest reported closing price of $151.33.

The projected annual revenue for Waste Management is $21,445MM, an increase of 8.87%. The projected annual EPS is $6.30, an increase of 16.13%.

Fund Sentiment

There are 2535 funds or institutions reporting positions in Waste Management. This is an increase of 37 owner(s) or 1.48%.

Average portfolio weight of all funds dedicated to US:WM is 0.4327%, an increase of 0.6928%. Total shares owned by institutions increased in the last three months by 4.20% to 360,353K shares.

What are large shareholders doing?

Bill & Melinda Gates Foundation Trust holds 35,234,344 shares representing 8.58% ownership of the company. In it’s prior filing, the firm reported owning 18,633,672 shares, representing an increase of 47.12%. The firm increased its portfolio allocation in WM by 3.03% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 12,329,600 shares representing 3.00% ownership of the company. In it’s prior filing, the firm reported owning 12,224,270 shares, representing an increase of 0.85%. The firm increased its portfolio allocation in WM by 10.11% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 8,526,782 shares representing 2.08% ownership of the company. In it’s prior filing, the firm reported owning 8,455,454 shares, representing an increase of 0.84%. The firm increased its portfolio allocation in WM by 9.21% over the last quarter.

Geode Capital Management holds 6,990,151 shares representing 1.70% ownership of the company. In it’s prior filing, the firm reported owning 6,952,108 shares, representing an increase of 0.54%. The firm increased its portfolio allocation in WM by 9.09% over the last quarter.

Pictet Asset Management holds 6,004,065 shares representing 1.46% ownership of the company. In it’s prior filing, the firm reported owning 6,010,036 shares, representing a decrease of 0.10%. The firm increased its portfolio allocation in WM by 11.69% over the last quarter.

Waste Management Background Information
(This description is provided by the company.)

Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America, providing services throughout the United States and Canada. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator, and owner of landfill gas-to-energy facilities in the United States. The Company’s customers include residential, commercial, industrial, and municipal customers throughout North America.

This article originally appeared on Fintel

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