What Every Waste Management Investor Should Know Before Buying

Core Insights - Waste Management (WM) is the largest trash hauler in North America, with a market cap of $86.9 billion, and has seen its share price increase over 375% in the last decade [2][4]. Industry Overview - The trash industry is growing due to the increasing North American population, leading to more waste generation [3]. - The industry is dominated by three major companies: Waste Management, Republic Services ($67.3 billion), and Waste Connections ($44.7 billion), which control the majority of the market [4]. Business Stability - Waste Management benefits from low customer churn, which is below 10%, due to high barriers to entry such as limited landfill space and the need for specialized trucks for municipal contracts [5]. Dividend Performance - Waste Management has a strong history of dividend increases, with a notable 10% increase in 2025, supported by reliable cash flow from long-term contracts [6]. - The company expects free cash flow for 2025 to be between $2.8 billion and $2.9 billion, which comfortably covers its projected dividend payouts of $1.3 billion to $1.4 billion [7]. - Although the current dividend yield is 1.49%, which is low historically, the dividend has increased by over 114% in the last decade, while the share price has risen by 305% [8].