Waste Management (WM) Raises Dividend by 15%, Announces New $3 Billion Stock Buyback

Waste Management (WM) has increased its quarterly dividend payment for 2026 by 15%, and announced a new $3 billion stock buyback program.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge-fund level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential The garbage disposal and environmental services company said that, going forward, it will pay a quarterly dividend to shareholders of $0.95 per share. That’s up 15% from the previous distribution of $0.83 a share and marks the 23rd consecutive year that the company has increased its dividend. Waste Management’s board of directors also authorized a new $3 billion stock buyback program. Management said their goal is to return 90% of free cash flow to investors in the coming year, including through share repurchases. Waste Management’s Balance Sheet The dividend increase and stock buybacks come as Waste Management strengthens its balance sheet, with the company reducing its debt load by $1 billion over the past year. Waste Management said it expects to end the current year with a leverage ratio of 3.1x and aims to lower that to 2.5x to 3.0x in 2026. WM stock has risen 9% this year, not including the company’s dividend payments. The latest dividend increase gives Waste Management’s stock a nearly 2% yield. Management at the waste disposal giant have continued to prioritize the dividend as the company has grown and prospered. Is WM Stock a Buy? Waste Management’s stock has a consensus Moderate Buy rating among 21 Wall Street analysts. That rating is based on 15 Buy and six Hold recommendations issued in the last three months. The average WM price target of $245.95 implies 12.01% upside from current levels.