Nothing Trashy About This Dividend Stock

Waste Management: Nothing Trashy About This Dividend Stock

About: (Waste Management, WMI)

We often say that the most boring sectors are the most exciting when it comes to finding juicy dividends and if you’re in the mood for boring, look no further than the trash-hauling business. No body likes to take the trash out and we rarely think about the profit potential for the companies that come to pick our trash up, but there is a pretty compelling investment thesis behind companies like Waste Management (NYSE:WMI).

            In a market environment that is all but begging for investors to play a little defense with quality, high-yiedling names, Waste Management, the largest U.S. trash hauler, is worth a look. Oh yeah, the company just announced it boosted its quarterly dividend 8.6% to 31.5 cents a share from 29 cents. Based on Thursday’s closing price, Waste Management currently yields 3.5%, pretty good, but that yield is going to get a bump with the new dividend. The new dividend will be declared in February and paid in March.

            This is the sixth consecutive year Waste Management has increased its dividend. The shares are up 8% in the past three months, double the return for the S&P 500 over the same time.