Waste Management’s “Boring” Business Is Powering a Quiet Rally

Core Insights - Waste Management (NYSE: WM) is experiencing strong demand for its services, driven by solid economic activity and high consumption, which translates into profitable business growth [2] - The company is on track for inclusion in the Dividend Aristocrats, having increased its dividend for 23 consecutive years, with a target of reaching 25 years by 2028 [3] - Despite missing Q4 2025 analyst estimates, Waste Management reported a 7.1% revenue growth and margin expansion, aligning with long-term trends that support its stock price [5] Financial Performance - Q4 results highlighted a 14% increase in dividends and an intention to resume share buybacks, which were previously suspended to focus on debt reduction [4] - The company anticipates $2 billion in buybacks for the year, representing over 2% of its market cap, which will help offset the dilutive effects of share-based compensation [4] - Free cash flow is expected to accelerate, supporting both dividend growth and the planned return to share repurchases [5] Market Position - The stock remains in an uptrend following a post-earnings pullback, with buyers likely to defend key moving-average support [5] - The balance sheet shows increased assets, reduced debt and liabilities, and a 20% increase in equity projected by the end of 2025 [4]