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Waste Management's Growth Strategy: Dividend Yield and Investment Outlook

Waste Management has shown resilience with a holding return of 5% and a YTD return of 8%. On April 8, 2008, Justin Ellsesser purchased 79 shares at $34.79, now valued at $36.54. The company announced a 4.5% dividend yield and expanded its organic recycling business through strategic acquisitions. Despite economic challenges, Waste Management's financials reflect stability, with a current ratio of 1.1 and total debt of $9.585 billion. With an evolving strategy focused on profitability, we recommend holding as waste volumes are projected to recover.

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Waste Management's Growth Strategy: Dividend Yield and Investment Outlook

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  1. Justin Ellsesser Waste Management

  2. Bought 79 shares at $34.79 on April 8, 2008 • Current Price: $36.54 • Holding Return: 5 % • YTD return: 8% • Morningstar Intrinsic Value: $37

  3. Recent News • Company announced a 4.5% dividend yield • Company has greatly expanded their organic recycling business through acquisitions of Terrabon, Harvest Power, and Garick earlier this year • Company has seen continued growth even during the recession and is attempting to evolve to meet the increasing Importance of the environment in the waste disposal business

  4. Financials • Current Ratio: 1.1 • Debt Ratio: 1.45 • Total Debt: 9.585 Billion • Cash: 1.169 Billion • Company Recently announced a 4.5% Dividend • Is evolving it’s business in the Organic Recycling Industry

  5. Future Outlook • Waste Management has implemented an asset Optimalization program to help with it’s profitability • It has stated it will be raising its core prices in 2010 which may drive away some business but should help with profitability • Waste Volumes which have seen negative growth since the recession are starting to come back to normal and are expected to turn positive in late 2010/early 2011

  6. Recommendation • Hold • Dividend will provide a good source of return • Company is attempting to revamp business to increase growth • Company recognizes the importance in organic waste disposal and creating energy from waste and is trying to take advantage

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