Waste Management (WM) DIvidends Date & History

Key Takeaways

• Waste Management offers a current dividend yield of 1.65%, paid quarterly at $0.945 per share for an annual total of $3.78.
• The company has raised its dividend for 23 consecutive years, with a 9% compound annual growth rate over the past five years.
• Payout ratio of approximately 51% indicates strong sustainability, supported by robust free cash flow expected to grow nearly 30% in 2026.
• Dividends are well-covered by earnings (TTM EPS $6.70) and free cash flow, with low debt levels post-acquisitions.
• WM's yield exceeds key peers like RSG (1.17%) and WCN (0.85%), making it attractive in the waste management sector.

Dividend Overview

Waste Management, Inc. (WM) maintains a disciplined dividend policy, paying quarterly dividends with a current rate of $0.945 per share. This equates to an annual dividend of $3.78 and a yield of 1.65% as of April 2026. The most recent payment occurred on March 27, 2026, following an ex-dividend date of March 13, 2026. WM is classified as a dividend growth stock, having consistently increased payouts for over two decades. Its modest yield appeals to investors seeking reliable income paired with capital appreciation in a defensive sector like waste services, where recurring revenue from essential services supports steady distributions.

Dividend History and Growth

Waste Management has a proven track record of dividend growth, with annual payouts rising from $3.00 in 2024 to $3.30 in 2025 and a planned $3.78 in 2026—a 14.5% increase from the prior year. This marks the 23rd consecutive annual increase, underscoring the company's long-term commitment to shareholders. Over the past five years, dividends have grown at a compound annual rate of about 9%, reflecting operational efficiencies and pricing power in solid waste collection and disposal. No cuts have occurred in over 20 years, with consistent quarterly payments even through economic cycles.

Dividend Sustainability and Payout Ratio

WM's dividend sustainability is robust, with a payout ratio of around 51% based on trailing twelve-month earnings per share (EPS) of $6.70. This leaves ample room for reinvestment and growth. Free cash flow (FCF) strongly covers dividends, with management projecting nearly 30% FCF growth in 2026 amid strong operational performance. Debt levels are manageable at a leverage ratio targeting 2.5x-3.0x, supported by $1.73 billion in levered FCF over the trailing twelve months. Earnings and cash flow coverage affirm the dividend's security, positioning WM for continued increases.

Dividend Compared to Industry Peers

In the waste management sector, WM's 1.65% yield stands above competitors. Primary peer Republic Services (RSG) offers 1.17% with a lower 35% payout ratio, prioritizing growth. Waste Connections (WCN) yields just 0.85%, reflecting its focus on acquisitions over distributions. WM's higher yield, combined with its superior growth streak, makes it a standout for income-oriented investors in this stable industry, where sector averages hover around 1-1.2%.

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Is This Stock Attractive for Dividend Investors?

Waste Management appeals to dividend growth investors valuing long-term consistency, given its 23-year streak of increases and 9% five-year CAGR. Income seekers may appreciate the 1.65% yield, higher than peers, backed by defensive revenue from essential services. Conservative, long-term investors benefit from the sector's stability, low cyclicality, and strong FCF coverage at a 51% payout ratio. However, the modest yield may not suit high-yield chasers, and growth investors might note the premium valuation. Overall, WM suits portfolios emphasizing reliable, growing income with moderate risk, particularly amid economic uncertainty where waste services remain resilient. Its balanced profile supports buy-and-hold strategies for patient dividend enthusiasts.

Disclaimer

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