Waste Management (NYSE:WM) has recently announced a decisive 14.5% increase in its dividend rate for 2026, underscoring the company’s ability to generate robust cash flow even as it integrates complex acquisitions. This increase marks the 23rd consecutive year the company has raised its dividend, solidifying its status as a reliable income generator for shareholders while it continues to pursue organic growth in recycling and renewable energy.
The new quarterly payout is $0.945 per share, or $3.78 annually. With the stock trading near $220, this creates a yield of approximately 1.7%, which is higher than the S&P 500 average of 1.1%. The board of directors also authorized a new $3 billion share repurchase program, replacing a smaller previous authorization and signaling strong confidence in the stock’s value. Management plans to return roughly 90% of free cash flow to investors in the coming year, including an expected $2 billion in share buybacks.
These returns are supported by a strengthened balance sheet, as the firm reduced its debt by $1 billion in 2025. Waste Management expects to end the current year with a leverage ratio of 3.1x and aims to lower this to a range of 2.5x to 3.0x in 2026.
Waste Management's stable business makes it an ideal option for long-term investors to hang on to. This year, its gains have been modest at around 7%, but in five years it has risen by around 85%. And that's without factoring in its dividend. With a modest yield and some terrific fundamentals, this is a safe stock to buy and hold for years.
