Waste Management, Inc.: A Massive Bull Market in…Trash Collection?
March 2, 2018
Waste Management Shares Up 300%
This month, we start with one of the least talked about bull markets: trash collection.
Regular readers know we love “boring” businesses. These stocks don’t snag many magazine covers, but they crank out reliable returns for shareholders.
Take Waste Management, Inc. (NYSE:WM), for example. We recommended the stock in 2015, back when shares traded around $44.00 per share. The business has nearly doubled in value since then, providing some valuable lessons for investors.
The main lesson is that you can make exciting returns in boring businesses. Waste Management provides a valuable service you always need. No matter what happens in the White House or on Wall Street, our trash has to go somewhere.
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This “recession-proof” business has resulted in steady income. Waste Management has paid out a dividend every year since 1976, going back to Gerald Ford’s presidency. Even though the height of the financial crisis, the company managed to increase its distribution.
Needless to say, these steady returns have paid off for shareholders. Over the past decade, WM shares have delivered a total return (including dividends) of nearly 300%. This performance crushed the returns from the broader market and comparable to some hot tech stocks.
Source: StockCharts.com
Investors can expect more upside. In December, management boosted the dividend and announced a $1.3-billion share buyback program. This signals enormous confidence in the business and likely more upside to come.
