Waste Management, Inc. (NYSE: WM) announced a 14.5% increase in its 2026 quarterly dividend, raising the payment to $0.945 per share from $0.825 in 2025. The increase marks the company’s 23rd consecutive year of dividend growth and will be paid for the first time in March 2026.
The board also approved a new $3 billion share‑repurchase authorization, replacing the remaining authority under the $1.5 billion program announced in 2023. Share repurchases will resume once WM’s leverage reaches its target range of 2.5‑3.0× net debt to EBITDA, a milestone expected in the second half of 2026.
WM’s financial profile supports the capital return program. Operating EBITDA margin has approached 30%, with a 30.6% adjusted margin reported in Q3 2025. Free cash flow is projected to rise to $3.8 billion in 2026, and the company’s leverage ratio was about 3.1× at year‑end 2025, moving toward the 2.5‑3.0× target.
Chief Executive Officer Jim Fish emphasized that the dividend hike and buyback authorization reflect confidence in the company’s cash‑flow outlook and the transition to a “harvesting phase.” He noted that investments in recycling, renewable natural gas, and the recent Stericycle acquisition are beginning to generate returns, allowing WM to focus on organic growth while maintaining a solid investment‑grade credit profile.
The announcement underscores WM’s disciplined capital allocation strategy, balancing shareholder returns with continued investment in high‑margin sustainability projects and the integration of its healthcare waste‑management portfolio. The move signals management’s belief that the company’s operational efficiencies and growing cash‑flow generation will support ongoing dividend growth and share repurchases in the coming years.
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