Waste Management (WM) to Increase its Quarterly Dividend Rate and a Refreshed Share Repurchase Authorization

Waste Management, Inc. (NYSE: WM) today announced that its Board of Directors has approved a 5.5% increase in the planned quarterly dividend rate for 2021, from $0.545 to $0.575 per share. On an annual basis, the per share dividend rate increases from $2.18 to $2.30. The Company also received authorization from its Board of Directors to repurchase up to $1.35 billion of the Company’s common stock, superseding the authority remaining under the $1.5 billion authorization announced in 2018.

“For eighteen consecutive years we have been able to increase our dividends due to the strength of our business and the growth in our free cash flow generation. We have a resilient business model and expect to continue to perform well in the coming years, positioning us to confidently increase our 2021 dividend rate,” said Jim Fish, President and Chief Executive Officer of Waste Management, Inc. “We are pleased to be able to return this cash to our shareholders, as dividends remain a top priority in utilizing our free cash flow.(a)

“Now that we have closed the acquisition of Advanced Disposal, our remaining capital allocation plan, after paying our dividend, will initially focus on strengthening our balance sheet to quickly return to our targeted leverage ratio of 2.5 times to 3 times. We anticipate achieving that level in 2021. Our capital allocation framework has not changed, we remain focused on maximizing long-term value through growth and optimization investments and returning excess cash to shareholders,” concluded Fish.(b)

Waste Management’s Board of Directors must declare each future quarterly dividend prior to payment. The Board of Directors intends to declare the first quarter 2021 dividend in February, at which time the Company will announce the record and payment dates for this dividend. It is expected that the first increased dividend will be paid in March of 2021.

You May Also Be Interested In

• MGIC Investment (MTG) Announces $750M Share Buyback, Declares $0.115 Dividend
• Waste Management (WM) PT Raised to $214 at Baird
• 1st Source Corp (SRCE) Raises Quarterly Dividend 6.3% to $0.34; 2.7% Yield